The latest bid is 16% higher than Newmont’s initial proposal and represents a 46% premium to Newcrest’s share price on Feb 3, before Newmont’s bid was announced. — Bloomberg
SYDNEY: US gold miner Newmont Corp raised its offer for Australia’s Newcrest Mining Ltd to A$29.4bil (US$19.54bil or RM86.3bil), trying to close a deal that would make it an unmatched giant among the world’s bullion producers.
Newcrest said yesterday that it had given US-based Newmont access to its books following the sweetened all-share bid.
“Newmont has indicated that the revised proposal represents its best and final price in the absence of a competing proposal,” Newcrest said in a statement.
Under the revised offer, Newcrest shareholders would receive 0.400 Newmont shares for each share held, with an implied value of A$32.87 (RM96.57) a share, up from the previous exchange ratio of 0.380 that Newcrest’s board unanimously rejected in February.
The latest bid is 16% higher than Newmont’s initial proposal and represents a 46% premium to Newcrest’s share price on Feb 3, before Newmont’s bid was announced.
“We always thought there would be another bump coming through. It’s probably enough for us,” said Andy Forster, senior investment officer at fund manager Argo Investments in Sydney.
Newmont is already the world’s largest gold producer by market value and ounces produced, but it would produce nearly twice as much of the yellow metal as its closest rival, Barrick Gold Corp, should it prevail in its bid for Newcrest.
Reuters had reported that Newmont was open to raising its offer price for Newcrest.
Rival miners Barrick Gold and Sibanye Stillwater Ltd have told Reuters they are not interested in bidding for Newcrest. — Reuters
