The deal represents an enterprise value of A$28.8bn and an equity value of A$26.2bn for Newcrest.
It marks a 30.4% premium to the company’s undisturbed stock price as of 3 February 2023 and a 39.1% premium to its undisturbed 30-day volume weighted average price on the same date.
Shareholders of Newcrest will receive 0.400 Newmont shares for each share held, with an implied value of A$29.27 per share.
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They will also get a special franked dividend of up to $1.1 a share, Newmont stated when the deal was announced this May. Upon closing, Newcrest shareholders will own 31% of the combined business.
Newmont claims that the merger will lead to $500m in annual pre-tax synergies. These synergies could be reached in the first two years after the deal is closed.
Last month, Newmont received clearance from the Canadian Competition Bureau for the takeover. It also secured approvals from South Korea’s Fair Trade Commission and Papua New Guinea’s (PNG) Independent Consumer & Competition Commission.
Newmont expects to close the deal in Q4 2023, after getting clearance from other regulatory authorities, including the Australia Foreign Investment Review Board (FIRB), Japan Fair Trade Commission (JFTC), and the Philippine Competition Commission (PCC).