Shareholders in Newcrest Mining (ASX:NCM) will receive a fully franked special dividend of US$1.10 ($A1.58) per share as part of the takeover deal with Newmont. The actual Australian dollar amount will be determined on October 18, with the dividend scheduled for payment to shareholders on the following day, October 19.
The payment of this special dividend is contingent on the successful completion of the proposed scheme of arrangement, through which Newcrest will be acquired by Newmont Corporation (via its subsidiary, Newmont Overseas Holdings Pty Ltd).
Newmont shareholders will convene next week in the US on October 12 to vote on the deal, while Newcrest shareholders are set to meet on Friday, October 13, to cast their votes on the transaction. Assuming the scheme becomes effective, the special dividend will be distributed on October 27.
Newmont has obtained all necessary regulatory approvals for the transaction with Newcrest, following clearance from the Papua New Guinea Securities Commission and approval from the Philippine Competition Commission last week.
In related news, Newmont faced two complaints, one of which alleged that a proxy statement related to the issuance of Newmont shares to Newcrest Mining shareholders contained misrepresentations and omissions of material information concerning the transaction. Newmont filed a proxy statement with the US Securities and Exchange Commission in September for a special meeting of shareholders, which included the share issuance proposal as part of the Newcrest deal.
On Wednesday, Newmont asserted that it believes the allegations have no merit. However, to mitigate any potential risks or uncertainties that these complaints may pose to the transaction, the company issued supplemental information without admitting any liability or wrongdoing.
It’s worth noting that the plaintiffs in the complaints have agreed that their claims are moot and will voluntarily cease their efforts in exchange for the filed supplemental disclosures.