Newmont Raises Bid For Newcrest Takeover, Offers 46% Premium to Feb 3 Price At $19.5B Valuation

Newmont Corporation NEM submitted a final revised takeover offer to Newcrest Mining Limited NCMGY, bidding a 46% premium to the closing price of Newcrest shares as on February 3, 2023.
The latest offer values Newcrest Mining at $19.5 billion, which would make it the largest-ever M&A deal in the gold-mining industry, WSJ reported.
Newcrest is Australia’s largest gold miner, which had rejected the previous offer from Newmont at a $17.5 billion valuation. The company initially proposed the acquisition in February 2023.
The premium reflects the increase in Newmont’s share price from February 3, 2023 to April 6, 2023 (assuming a price of $52.05/share with AUD / USD of 0.667) and Newcrest share price as of February 3, 2023 (A$ 22.45/share with AUD / USD of 0.692).
Newmont’s new bid is based on 0.400x Newmont shares per Newcrest share, resulting in the combined company being 31% owned by Newcrest and 69% owned by Newmont.
The Newcrest Board of Directors has agreed to grant Newmont confirmatory due diligence access to enable Newmont to put forward a binding proposal.
Per the new proposal, Newcrest would have the right to fund and pay to its shareholders a special dividend of up to USD$1.10 per Newcrest share.
Price Action: NEM shares are trading lower by 3.01% at $49.55 in premarket on the last check Tuesday.
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