Guess which ASX 200 company bought over $65 million of De Grey shares in August

The De Grey Mining Limited (ASX: DEG) share price is having a tough year.

Since the start of 2022, the gold developer’s shares have lost 27% of their value.

While clearly there have been a lot of sellers of its shares, recently there has been a notable buyer of them.

Who is buying De Grey shares?

This week it was confirmed that ASX 200 gold miner Gold Road Resources Ltd (ASX: GOR) has been topping up its holding in De Grey Mining.

According to the release, Gold Road, via its wholly owned subsidiary Renaissance Resources, acquired an additional stake in De Grey Mining earlier this week under an equity collar agreement with Credit Suisse. The company agreed to pay approximately $1.00 per share for the parcel of 65,938,098 shares.

This ~$66 million deal increased its interest in De Grey Mining to 19.99%.

Is a takeover looming?

While you could never rule out a takeover being made, that’s not the intention at this point. The company explained:

This intended acquisition of further shares in DEG is consistent with Gold Road’s stated strategy to grow and diversify its growth pipeline. At this stage, this shareholding is seen as a long-term investment and Gold Road does not intend to make a takeover bid or other offer for DEG, but Gold Road reserves its right to do so and to make further investments in DEG at any time.

Gold Road certainly is no stranger to takeovers. Earlier this month the company completed the acquisition of DGO Gold via an all-scrip deal valuing the transaction at approximately $250 million.

It was also chasing Apollo Consolidated last year before being outbid by fellow gold miner Ramelius Resources Limited (ASX: RMS).

The post Guess which ASX 200 company bought over $65 million of De Grey shares in August appeared first on The Motley Fool Australia.

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More reading

• Gold Road share price lifts as half-year profit doubles
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why has the De Grey share price leapt 36% in a month?

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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