May 18, 2023 | Materials | Australia | Ended

Newcrest / Newmont: Deal Insights

American gold miner Newmont agreed on 14-May-23 to acquire Australian rival Newcrest for an equity value of AUD 26.2bn through an all-stock Australian scheme of arrangement. Newcrest shareholders will receive 0.40 Newmont shares or Chess Depository Interests (CDIs) for each Newcrest share held, giving them 31% ownership of the combined group. In addition, target holders will receive a special dividend of up to USD 1.10 per share once the scheme becomes effective. The definitive agreement comes after Newcrest rejected Newmont’s previous non-binding proposal made on 5-Feb-23 at a 0.38 merger ratio, then worth AUD 27.16 per share and representing a 21% takeover premium. Newmont came back with a “best and final” offer on 11-Apr-23, which increased the merger ratio to 0.40 and added the special dividend, with the proposal then equating to AUD 32.87 per share. Currently, including the special dividend, the accepted offer consideration represents a ...

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