Newcrest Mining Limited (ASX:NCM), Australia’s biggest gold miner, announced on Friday that its shareholders overwhelmingly approved the company’s acquisition by Newmont Mining Corporation of Canada Ltd (TSX:NGT).
Newcrest said the takeover deal was passed by 92.63% of the votes cast by 84.74% of Newcrest shareholders.
In May, Newmont sweetened its all-stock offer for the Australian miner to 0.4 of a Newmont share for each Newcrest share held, or a total consideration of about US$16.81 billion.
As part of the agreement, Newcrest is allowed to pay a franked special dividend of up to $1.10 per share on the implementation of the deal, returning tax credits to Australian shareholders.
Newcrest has operations in Australia, Papua New Guinea, and owns Canada's Red Chris and Brucejack mines in British Columbia.
The acquisition also provides Newmont with greater exposure to copper.
The takeover agreement is expected to be approved by the Federal Court of Australia on October 17, 2023.
Shares of Newmont rose 1.5% to $53.91 in midday trading on Friday but have fallen 21% year to date.
Contact Sean at sean@proactiveinvestors.com