CA - Newmont confirms definitive agreement to buy Newcrest Mining

2023-05-14 18:58:22 ET

Newmont ( NYSE: NEM ) said Sunday it has entered into a binding agreement to acquire Newcrest Mining ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) via an Australian court-approved scheme of arrangement.

Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said it recommends shareholders vote in favor of Newmont's ( NEM ) offer, which comprises 0.400 of its own shares for each Newcrest share; Newcrest also is permitted to pay a special dividend of up to $1.10/share around the time any deal completes.

Under the deal, Newcrest (NCMMGF) ( OTCPK:NCMGY ) shareholders would receive 0.4 Newmont ( NEM ) share for each share held, with an implied value of A$29.27/share (US$19.53/share), a 30.4% premium to where its shares were trading in early February before Newmont's interest was known.

The takeover requires approval from Australia's Foreign Investment Review Board as well as favorable votes from shareholders of the two companies, among other regulatory approvals.

The deal would create by far the world's biggest gold miner by production - nearly double its nearest rival, Barrick Gold ( GOLD ) - with mines in North and South America, Africa, Australia and Papua New Guinea.

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