The shareholders of Newcrest have approved the takeover of the company by Newmont, while the shareholders of the latter have also decided in favor of the acquisition, and the merger of the two gold producers is now being subject to court approval.
The gold mining sector’s largest-ever takeover has been cemented after shareholders of both companies approved a deal valued at around A$26 billion. Newmont's offer represented a 30.4% premium to Newcrest’s undisturbed closing price of A$22.45 a share on February 3, and a 39.1% premium to the company’s undisturbed 30-day volume weighted average share price.
The deal will consolidate Newmont’s position as the world’s top producer of bullion.
“Recognizing the strategic rationale to create the industry’s strongest portfolio of world class gold and copper assets, Newmont’s shareholders overwhelmingly voted in favour of this transformational transaction,” said Newmont president and CEO Tom Palmer.
“This unrivalled platform, featuring the industry’s best talent running the highest concentration of Tier 1 assets in the most favorable jurisdictions, uniquely positions Newmont to generate superior returns for decades.”
Newcrest chairperson Peter Tomsett told shareholders that the company would now apply to the Federal Court of Australia to approve the scheme, with a hearing scheduled for October 17. The company is expected to suspend share trading on the ASX, PNGX and TSX on the close of October 26.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
