The Newcrest Mining Ltd (ASX: NCM) share price is in the red after the S&P/ASX 200 Index (ASX: XJO) gold icon extended the exclusivity period offered to suitor, Newmont Corporation (NYSE: NEM).
Newmont offered to acquire its ASX 200 counterpart in February, but its bid was rejected by its Aussie rival. It later upped its all-scrip offer to an implied price of $32.87 per share.
The Newcrest share price slipped on open and is trading 1.38% lower at $28.49 in early morning trade.
Letâs take a closer look at todayâs news of the $32 billion takeover facing the ASX 200 gold producer.
ASX 200 gold giant extends exclusivity period
The Newcrest share price is falling after the company announced Newmont will have an extra week to comb through its books.
Newmont will now have until 18 May before submitting a binding offer or losing its forfeiting its exclusivity. That is unless the period is extended further.
The US-listed rival-turned-suitor is said to have substantially completed its due diligence.
Newcrest investors have been offered 0.4 Newmont shares for each stock held in the ASX 200 gold company. That offer was declared best and final by the acquisition hopeful.
That represents an implied value of $32.87 per share and an enterprise value of $32 billion for the mining giant. Newcrest had a $25.8 billion market capitalisation as of Thursdayâs close.
The offer also allows the ASX 200 gold share to pay a fully franked special dividend of as much as US$1.10 per share.
If the tabled acquisition goes ahead, Newcrest shareholders will walk away with a 31.1% ownership in Newmont.
Newcrest share price snapshot
The Newcrest share price has had a ripper run as of late.
The stock has gained 38% since the start of 2023. Itâs also 17% higher than it was this time last year.
In comparison, the ASX 200 has lifted 4% year to date and 4% since this time last year.
The post Newcrest share price slips as exclusivity period for $32b takeover extended appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…
See The 5 Stocks
*Returns as of April 3 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- What’s the gold price forecast for the remainder of 2023?
- 5 things to watch on the ASX 200 on Friday
- Top defensive ASX shares to buy in May 2023
- 5 things to watch on the ASX 200 on Friday
- Why are ASX 200 gold shares going gangbusters today?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/z7moXlJ
Stock Pick 