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newmont (New York Stock Exchange: no) said on Sunday that it had entered into a binding agreement to acquire Newcrest Mining (OTCPK: NCMGF) (OTCPK: NCMGY) via an Australian court-approved arrangement scheme.
Newcrest (OTCPK: NCMGF) (OTCPK: NCMGY) said so Shareholders recommend voting for from Newmont (no) the offer, which consists of 0.400 of its shares for each Newcrest share; Newcrest is also allowed to pay out a special dividend of up to $1.10/share at the time any transaction is completed.
Under the deal, Newcrest (NCMMGF) shareholders (OTCPK: NCMGY) will receive 0.4 shares of Newmont (NEM) each, with an implied value of A$29.27 a share ($19.53 a share), a premium of 30.4% over whereabouts. The shares traded in early February before Newmont’s interest was known.
The acquisition requires approval from the Australian Foreign Investment Review Board as well as affirmative votes from shareholders of the two companies, among other regulatory approvals.
The deal will create the world’s largest gold mine by production – nearly twice that of its nearest competitor, Barrick Gold (GOLD) – with mines in North and South America, Africa, Australia and Papua New Guinea.
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