Deterra Royalties: Finally Expanding, but Is It a Good Deal?

Wide-moat Deterra Royalties has offered to buy London-listed Trident Royalties via a scheme of arrangement for GBP 0.49 cash per share—around GBP 144 million or AUD 276 million. Trident also had about USD 22 million (AUD 33 million) in net debt as of May 3, 2024. The acquisition is subject to Trident shareholder approval, court approval, and other conditions. While there is the possibility of a higher bid from a third party, we think the offer is highly likely to succeed as Trident directors intend to recommend it to shareholders.