Australia-based Newcrest Mining has received an increased takeover bid of $16.9bn or A$27.16 ($18.7) per share from gold mining firm Newmont.

Newcrest earlier turned down the takeover proposal of 0.363 per share from Newmont citing it would not generate adequate compelling value to the company’s shareholders.

Under the revised conditional and non-binding indicative proposal, Newcrest shareholders would receive 0.38 Newmont shares for every share held.

The combined company would be 30% owned by Newcrest and 70% by Newmont.

Newmont said the proposed deal will be executed via a scheme of arrangement. It will combine two of the leading senior gold producers in the sector.

In a press statement, Newcrest said: “The Newcrest Board had considered that the earlier proposal from Newmont would not deliver sufficiently compelling value to Newcrest shareholders and on that basis, rejected the earlier proposal.”

The firm said the proposal marks a 21% premium to its closing price of A$22.45 ($15.5) per share on 3 February 2023.

Newmont president and CEO Tom Palmer said: “We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate.

“The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s board of directors.”

The latest indicative proposal by Newmont is subject to several conditions. These include granting exclusivity to the company, and various regulatory approvals in Australia and the US, among others.

Newcrest has operating mines in Australia, Canada, and Papua New Guinea.