Gold Road Resources' (ASX:GOR) acquisition by Gold Fields has a low risk of an interloper based on the synergies between the companies due to the Gruyere joint venture, said Euroz Hartleys in a Monday note.
According to a Monday Australian bourse filing, Gold Road Resources signed a scheme implementation deed with Gold Fields subsidiary Gruyere to acquire 100% of Gold Road's issued and outstanding share capital through a scheme of arrangement.
The company's shareholders will receive a fixed cash consideration of AU$2.52 per share and a variable cash consideration equal to the full value of each shareholder's proportionate holding in Northern Star Resources (ASX:NST), calculated by the date the scheme becomes effective.
Euro Hartleys maintained Gold Road's buy rating with a price target of AU$3.39.
The company's shares rose 2% in recent Tuesday trade.