Vault Minerals Ltd's stock plummeted 8.41% during intraday trading on Wednesday.
The sharp decline follows news that Regis Resources will take over the smaller peer Vault Minerals to create Australia's third-largest listed gold producer, with the combined entity valued at around A$10.7 billion.
UBS noted that Vault Minerals was among the cheapest mid-cap gold producers and was trading at a significant discount to its net present value estimates prior to the deal announcement.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.