Analyst Note| Jon Mills |
Newmont, the world’s largest gold miner, has offered about AUD 27.45 per share to buy gold miner Newcrest via scheme of arrangement. The offer is subject to due diligence, Newcrest granting Newmont exclusivity, Newcrest shareholder approval and other conditions. Under the offer, Newcrest shareholders would receive 0.38 Newmont shares for each Newcrest share they own, with Newmont also listing its shares on the ASX. At Newmont’s share price of USD 49.85 and assuming an AUD/USD rate of 0.69, this values each Newcrest share at about AUD 27.45. Newcrest is considering the offer and can either reject it or grant Newmont exclusivity and due diligence.