Newmont To Acquire Newcrest Mining In A$26.2 Bln Deal

(RTTNews) - Newmont Corp. (NEM, NGT.TO) agreed to acquire 100 percent of the issued shares in Australia's Newcrest Mining Ltd (NCM.AX, NCMGF.PK, NCMGY.PK).

As per the deal, Newcrest shareholders will receive 0.400 Newmont shares for each Newcrest share and a special dividend of up to US$1.10 per share paid by Newcrest, representing a 30.4 percent premium.

Under the terms of the Scheme, and based on current market prices, the implied equity value of Newcrest is A$26.2 billion, including the dividend, with an enterprise value of A$28.8 billion. Newmont and Newcrest shareholders will own about 69 percent and 31 percent of the combined entity, respectively.

Newcrest's board unanimously recommends that shareholders vote in favour of the Newmont transaction in the absence of a superior proposal, and subject to the Independent Expert concluding and continuing to conclude that the Newmont transaction is in the best interests of Newcrest shareholders.

The transaction is expected to close in the fourth quarter of 2023.

Newmont noted that Gregory Boyce will continue as Chair of Newmont's Board of Directors and the Board will select two directors from Newcrest to join the Newmont Board. Tom Palmer will continue as President and Chief Executive Officer of Newmont and will lead the combined company.