Newmont announced that an overwhelming majority, over 96 percent of shareholder votes, were in favor of the proposal to issue Newmont common stock for the acquisition of Newcrest Mining. The approval took place at a special shareholder meeting.
The next step in this acquisition process is the vote from Newcrest’s shareholders, scheduled for October 13, 2023, at 10:30 a.m. Australian Eastern Daylight Time.
Key approvals from government regulatory bodies necessary for this transaction have been acquired. Both companies are looking forward to finalizing the acquisition in early November, contingent on fulfilling standard closing conditions.
Earlier this year, on May 14, Newmont made public its intention to acquire all issued shares of Australia-based Newcrest Mining. The acquisition details highlighted that Newcrest shareholders would get 0.400 Newmont shares for each of their Newcrest shares, in addition to a special dividend up to US$1.10 per share. This arrangement represents a premium of 30.4 percent.
The acquisition pegs Newcrest’s implied equity value at A$26.2 billion, inclusive of the dividend. Taking other financial parameters into account, its enterprise value stands at A$28.8 billion. Post-acquisition, ownership of the combined entity would be split between Newmont and Newcrest shareholders at approximately 69 percent and 31 percent, respectively.