Gold miner Newcrest Mining has announced a fully franked special dividend of $1.10 a share, conditional upon a scheme of arrangement under which US major Newmont Corporation would acquire the company.
The two gold miners earlier this year inked a binding scheme implementation deed under which Newcrest shareholders would receive 0.4 Newmont shares for each Newcrest shares held, with Newcrest additionally permitted to pay a fully franked special pre-completion dividend of up to $1.10 a share.
The offer values Newcrest shares at A$29.27 each and implies an equity value of A$26.2-billion and an enterprise value of A$28.8-billion to Newcrest.
The offer represented a 30.4% premium to Newcrest’s undisturbed closing price of A$22.45 a share on February 3, and a 39.1% premium to the company’s undisturbed 30-day volume weighted average share price.
If the scheme becomes effective, the special dividend will be paid on October 27.