Published: February 21, 2023 |

[Click image to enlarge]

Newcrest Mining said that its board has determined unanimously to reject the recent $16.9 billion takeover offer from rival gold miner Newmont on the basis that it does not represent enough value for the company’s shareholders.

Earlier this month, Newmont proposed the all-stock deal under which it planned to acquire 100% of the Australia-based gold miner through a scheme of arrangement. Under this, Newmont proposed to exchange 0.380 of its shares for each Newcrest Mining share held.

The offer from the U.S.-based mining major implied a value of A$27.16 ($18.8) per share for the Australian miner.

Going by the exchange ratio, the combined company would be owned 30 percent by Newcrest Mining’s shareholders, while the remaining 70 percent will be owned by Newmont’s shareholders.

While rejecting the offer, Newcrest Mining’s board said that the company is ready to give access to limited, non-public information on a non-exclusive basis to Newmont. This is for determining if the latter can come up with an improved bid.

The Australian gold miner said that the provision of the information is subject to some conditions such as the signing of a relevant non-disclosure agreement.

Newcrest Mining cautioned that there is no assurance that any further talks with Newmont will result in a revised proposal or any deal.

“The board considers Newcrest to be uniquely positioned with a portfolio of long-life tier 1 gold and copper assets, with increasing copper exposure and a high-quality development pipeline. The board remains fully committed to acting in the best interests of Newcrest shareholders,” Newcrest said in a statement.

Previously, Newmont made an indicative, non-binding, and conditional acquisition proposal to Newcrest Mining at an exchange ratio of 0.363 of its shares for each Newcrest Mining share. The offer was turned down by the Australian miner’s board saying that it will not generate sufficient compelling value for the company’s shareholders.

Newcrest Mining has operating mines in Australia, Papua New Guinea, and Canada, while Newmont operates in mining jurisdictions in North America, Australia, Africa, and South America.

Source: NS Energy

About Newcrest Mining
Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates. It is also involved in the exploration of silver deposits. The company primarily owns and operates mines and projects located in Cadia and Telfer, Australia; and Lihir, Papua New Guinea. It also holds 70 percent interest in the Red Chris mine project located in British Columbia, Canada. Newcrest Mining Limited was founded in 1966 and is headquartered in Melbourne, Australia.

To stop by Newcrest’s website, CLICK HERE

Be in-the-know when you’re on-the-go!