Newcrest Board Rejects Newmont Takeover Proposal, But Willing to Share Information

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 [e-mail]

(END) Dow Jones Newswires

February 15, 2023 16:59 ET (21:59 GMT)

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