The Regis Resources Limited (ASX: RRL) share price is on course to end the week on a high.
In morning trade, the gold minerâs shares are up 11% to $1.44.
Why is the Regis Resources share price storming higher?
Investors have been bidding the Regis Resources share price higher today amid reports that Andrew âTwiggyâ Forrest is wanting to increase his stake in the company.
According to the AFR, the mining billionaire was seeking to acquire a 15% stake in the company for $1.48 per share. This represents a 13.8% premium to its last close price and values the stake at $168 million.
Itâs understood that Twiggy had enlisted Barrenjoeyâs equities desk to source the shares for his Wyloo Consolidated Investments business, which reportedly already owns a 4.9% stake in Regis Resources.
However, it was 15% or nothing as far as Twiggy was concerned, with his order made on a kill or fill basis.
Did it fill?
Unfortunately for Twiggy, his order was not a success according to the AFR. It quotes a message from Barrenjoey:
We received interest for in excess of 12% of the company. When aggregated with Wylooâs existing position (4.9%), the combined stake would not have met 19.9% target as stipulated at launch. As a result, the transaction did not proceed.
Nevertheless, this news has caught the eye of investors on Friday. Which has led to the Regis Resources share price leaping higher.
Should you invest?
One broker that would be supportive of Twiggyâs ambitions is Macquarie. Last week the broker put an outperform rating and $2.20 price target on the companyâs shares.
Even after todayâs gain, this still implies potential upside of over 50% for investors over the next 12 months.
The post Regis Resources share price jumps 11% amid Twiggy Forrest raid appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Friday
- 5 things to watch on the ASX 200 on Thursday
- 5 things to watch on the ASX 200 on Tuesday
- These are the 10 most shorted ASX shares
- Down 18% in a week, what’s stolen the shine from the Regis Resources share price?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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