We got some big ASX news that most investors with an interest in gold stocks might want to hear about today. And it involves the ASX's largest gold share, Newcrest Mining Ltd (ASX: NCM).
As many investors would be aware, Newcrest is currently in the midst of a takeover proposal from the giant US-listed gold miner Newmont Corporation (NYSE: NEM).
Newcrest and Newmont have been locked in a courtship dance ever since the Coloradoan gold giant first revealed its interest in the ASX-listed Newcrest back in February. Newmont made a couple of offers in the following months. The final offer of 0.4 Newmont shares for every Newcrest share owned was made in early April. That valued Newcrest at $32.87 a share at the time.
At today's Newmont share price and currency rates, this offer is worth approximately $24.53 per Newcrest share.
In May, Newcrest's board announced that the offer had been given the board's approval and recommendation. And today, Newcrest shareholders got to voice their say on the offer as well.
Image source: Getty Images
Newcrest shares rise as Newmont merger overwhelmingly endorsed by shareholders
And it was almost unanimous. In a statement put out to ASX investors this afternoon, Newcrest confirmed that 92.63% of votes cast were in favour of the Newmont acquisition.
The proposed merger will now head to the Federal Court on 17 October next week for final approval. If the Court gives the green light, Newcrest's last day of ASX life will be 26 October later this month. Shareholders will then receive their new Newmont CHESS Depositary Interest (CDI) shares the following day.
Earlier this month, Newcrest announced that its shareholders will be treated to a special, fully franked dividend worth US$1.10 per share before the merger goes through if it is approved. Since all looks well on that front, Newcrest investors can pencil in 27 October for that payday.
The Newcrest Mining share price has reacted to this news well today so far. At the time of writing, Newcrest shares are up a rosy 0.9% at $26.03 each.
