Newcrest Board Rejects Newmont Takeover Proposal, But Willing to Share Information
16 February 2023 - 9:14AM
Dow Jones News
By Rhiannon Hoyle
Newcrest Mining Ltd. on Thursday said its board has rejected a
roughly $17 billion takeover proposal from Newmont Corp., but has
told the U.S. gold-mining giant it would be willing to share some
information to see if it can improve upon its offer.
Newmont, based in Colorado and one of the world's largest
producers of gold, recently submitted a conditional and nonbinding
indicative proposal to acquire Newcrest, Australia's largest listed
gold producer. Newmont said it would offer 0.380 of its own shares
for each Newcrest share held.
"The board has considered the indicative proposal and has
unanimously determined to reject the offer as it does not represent
sufficient value for Newcrest shareholders," the company said on
Thursday.
"In order to determine if Newmont can provide an improved
proposal for consideration by the board that appropriately reflects
the value of Newcrest, the board has indicated to Newmont that it
is prepared to provide access to limited, non-public information on
a non-exclusive basis," Newcrest said.
Access to the information would be subject to some conditions,
including the signing of an appropriate non-disclosure agreement,
it added.
The proposal followed an earlier approach by the U.S. company
that valued each Newcrest share at 0.363 Newmont shares, which
Newcrest directors also rejected.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
February 15, 2023 16:59 ET (21:59 GMT)
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