5th Aug 2020. 12.21pm

Regency View:

TAKE PROFITS – Highland (HGM)

Regency View:

Highland (HGM): Close at 297.4p

Highland Gold Mining has agreed to a takeover offer from Fortiana Holdings Limited that values the group at just over £1bn.

Highland said, under the deal Fortiana will offer shareholders 300p per share, a 3.8% premium on its closing price on Thursday 30th July, to purchase the 40.06% of the company’s shares that it does not already own.

There’s always a small premium attached to deal completion as these processes can take time to iron out.

We believe it’s prudent to take profits at market prices as, in the unlikely event the deal fell through, the shares would drop significantly.

Gross profit = 45%

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