2341 GMT - Northern Star has agreed to pay a sizable premium to buy De Grey, says Citi analyst Kate McCutcheon. Although, on Citi's estimates, Northern Star might be able to consider a larger project than previously envisaged at De Grey's Hemi site, she says. Northern Star should be able to comfortably fund the Hemi project, which will help address issues in its aging and increasingly costly portfolio, says McCutcheon. Still, "the timing comes as a surprise given NST's late Oct comments that 'greatest returns right now are in organic delivery'," she says. De Grey's Hemi project is also "a deviation from NST's typical 'old asset turnaround' playbook," she says. The premium gives McCutcheon confidence De Grey shareholders will agree to the deal. Citi has a buy rating on Northern Star, which is down 6.1%. De Grey is 28% higher. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
December 01, 2024 18:41 ET (23:41 GMT)
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