Sean K
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I think NCM could have fought a little harder here and got another dollar or two.
Anyone going to keep the NEM shares?
Newcrest Mining’s board has folded on the $28.8bn takeover approach from the world’s biggest gold miner, with the company recommending shareholders accept the company’s all-scrip bid.
Newmont upped its bid in April, offering 0.4 shares for each Newcrest share on offer – a 10.1 per cent improvement on its February position on a pure scrip basis. But Newmont has also offered to allow its Australian target to pay a special dividend of up to $US1.10 a share if the deal closes – without reducing its offer – to allow Newcrest to extinguish its remaining franking credits.
On current values of Newmont’s scrip, the deal gives Newcrest an implied equity value of $26.2bn and an enterprise value of $28.8bn – in early April that was an implied equity value of $29.4bn and enterprise value of $32bn.
Newcrest investors will emerge owning 31.1 per cent of the combined group if the deal completes.
While an independent expert value will still be required, Newcrest chairman said the period of mutual due diligence over the last month had shown the merger would deliver significant value to the company’s shareholders.
Anyone going to keep the NEM shares?
Newcrest Mining’s board has folded on the $28.8bn takeover approach from the world’s biggest gold miner, with the company recommending shareholders accept the company’s all-scrip bid.
Newmont upped its bid in April, offering 0.4 shares for each Newcrest share on offer – a 10.1 per cent improvement on its February position on a pure scrip basis. But Newmont has also offered to allow its Australian target to pay a special dividend of up to $US1.10 a share if the deal closes – without reducing its offer – to allow Newcrest to extinguish its remaining franking credits.
On current values of Newmont’s scrip, the deal gives Newcrest an implied equity value of $26.2bn and an enterprise value of $28.8bn – in early April that was an implied equity value of $29.4bn and enterprise value of $32bn.
Newcrest investors will emerge owning 31.1 per cent of the combined group if the deal completes.
While an independent expert value will still be required, Newcrest chairman said the period of mutual due diligence over the last month had shown the merger would deliver significant value to the company’s shareholders.