- Newcrest Mining (NCM) shoots down a $24 billion takeover offer from Newmont Corporation, claiming the deal does not represent “sufficiently compelling value” for NCM shareholders
- Under the all-scrip deal, New York-listed Newmont would pay 0.38 Newmont shares for each Newcrest share to take full control of the ASX’s biggest gold miner
- While Newcrest has rejected the offer, it has presented Newmont with access to some of its books to give Newmont a chance to improve on its bid
- The news comes as Newcrest announces a profit after tax figure of US$293 million for the six months to the end of December 2022
- Shares in Newcrest Mining last traded at $24.31 on Wednesday afternoon
Gold mining big-cap Newcrest Mining (NCM) has shot down a $24 billion takeover offer from New York Stock Exchange-listed Newmont Corporation, claiming the all-scrip deal did not represent “sufficiently compelling value” for NCM shareholders.
Newcrest confirmed the offer on February 6, under which the US buyer would fork out 0.38 Newmont shares for each Newcrest share on offer. For reference, Newmont shares were at around US$48 (A$68) at the time, while Newcrest shares were trading at around $24.
However, the Newcrest board on Thursday morning said this price undervalued the company, given its portfolio of “long-life tier-one” gold and copper assets, its increasing copper exposure, and its “high-quality” development pipeline.
In any case, the ASX’s biggest gold miner has kept the door open for a revised bid from Newmont, opening up some of its books to its NYSE counterpart to see if access to non-public Newcrest information could help sweeten the deal.
Newcrest announced its rejection of the bid in tandem with its latest half-yearly financial report, which highlighted a profit after tax figure of US$293 million for the six months to the end of December 2022 — marginally lower than the US$298 million posted over the same period the year before.
The company said it remained on track to reach its FY23 guidance following the “solid” first-half performance.
The Newcrest board has declared an interim dividend of 15 US cents per share and a special dividend of 25 US cents for the half-year, both fully franked.
Shares in Newcrest Mining last traded at $24.31 on Wednesday afternoon.