Sandfire back in ASX 200 after Spanish acquisition
S&P Dow Jones Indices has announced Sandfire Resources will re-join the S&P/ASX 200 next week (reports MiningNews).
25th November 2021
The out-of-cycle move was due to the takeover of Spark Infrastructure Group, which freed up a space.
Sandfire will be added to the index next Tuesday.
The copper producer was removed from the index in March after 10 years.
In the months before its removal, Sandfire's market capitalisation had languished below A$1 billion.
However, the strength of the copper price this year and the announcement of a transformational acquisition have changed that.
In September, Sandfire announced the US$1.865 billion acquisition of the MATSA copper complex in Spain, which is the largest all-cash offer ever by an Australian mining company.
The equity part of the deal required Sandfire to raise A$1.24 billion at $5.40 per share.
The acquisition is due to be completed in the March 2022 quarter.
"In my view, we're worth at least $10 a share as we sit here today," managing director Karl Simich told The Boom in a Room Investor Conference last month.
Jefferies and Euroz Hartleys have the highest price targets for the miner, at $8.80 and $8.10, respectively.
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