Elliot Investment buys $2B stake in Northern Star Resources
- Elliott Investment Management acquired a 6.2% voting stake in Northern Star Resources.
- Shares of the gold miner closed at $21.71 following the market disclosure.
- The activist investor is pushing for a leadership overhaul and a potential sale of the business.
Activist hedge fund Elliott Investment Management has acquired a 6.2% direct voting stake in Northern Star Resources (ASX:NST) valued at over $2 billion.
The purchase follows months of pressure from the fund after repeated production downgrades stripped billions of dollars from the miner's market value.
"The swaps were subsequently terminated and, as at the date of this form, each of Elliott Associates and Elliott International does not have, and has no associates with, a long equity derivative position relating to shares," said Elliott Investment Management in a disclosure to the market.
Northern Star recently rejected the fund's demand to appoint six new board members, choosing instead to name former BHP director Terry Bowen and former Perseus Mining boss Jeff Quartermaine as directors.
The company stated that further board changes are planned following the upcoming retirement of Chair Michael Chaney in November.
Following the announcement the Northern Star Resources share price was unchanged at $21.71.
The board restructuring began in May after former CEO Stuart Tonkin announced his departure following operational delays and cost overruns on a $1.7 billion processing plant expansion at the Kalgoorlie Super Pit.
Incoming CEO Suresh Vadnagra was hired from Glencore with a package worth nearly $20 million in salary, cash incentives, and stock options to lead the business.
