Newmont didn’t need all of its extra week of due diligence to nail down its all-paper $US17.8 billion dollar takeover of Newcrest Mining.
Newcrest announced first thing Monday morning that it had struck a deal with Newmont, after extending the due diligence period on Friday for an extra week.
The terms are 0.4 of a Newmont share and up to $US1.10 in a special franked dividend to be paid by Newcrest to its shareholders ahead of its takeover (to use up its franking credits).
Newcrest board said in Monday morning’s statement that it unanimously recommends shareholders vote in favour of the Newmont transaction, which will be done via an Australian scheme of arrangement later this year.
The proposed deal will still need foreign investment approval in Australia.
Newcrest’s Chairman, Peter Tomsett, said in Monday’s statement: “This transaction will combine two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline.”
“In addition to the ongoing benefits of merging these premier portfolios, the combined group will set a new benchmark in gold production while benefitting from a material and growing exposure to copper and a market leading position in safety and sustainability.
“The Newcrest Board is unanimously recommending the proposal. We are very proud of the entire Newcrest team for building a world class metals business, which will form a key part of the combined group. We believe our shareholders and other stakeholders can look forward to an exciting and prosperous future.”
He said that Newmont had agreed to establish a foreign exempt listing on the ASX to allow Newcrest shareholders to trade Newmont shares via CHESS Depositary Interests (CDIs) on the ASX (Allkem and Livent are proposing something similar in their proposed merger while News Corp and Amcor already have that structure in place).
Newcrest shareholders will be able to elect whether to receive the Scheme Consideration in NYSE listed Newmont shares or ASX listed CDIs.
