1/14/2019, 11:39 AM (Source: TeleTrader)
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Newmont Mining to pay $12.5B for Goldcorp

Newmont Mining Corp. said on Monday that it agreed to a 17% premium in a deal to take over Goldcorp Inc., based in Vancouver, in an all-stock transaction. It added the figure was calculated against 20-day volume-weighted averages and that the equity valuation comes in at $10 billion. The gold mine operator from Greenwood Village, Colorado, offered 0.328 of its share per each outstanding share in the target entity. It claimed the combined portfolio would be "unmatched."

The enterprise value, which includes items such as cash on hand and debt, is $12.5 billion, according to the announcement. Newmont Goldcorp will have "an unparalleled project pipeline," working in "the most prospective" sites, the statement adds and reveals estimated pretax synergies, immediately accretive, are up to $100 million. The gold giant targets six to seven million ounces per year in the next decade, compared to Newmont's output of 5.3 million and Goldcorp's 2.6 million ounces from 2017.

Pending clearances, the takeover is seen for completion by midyear, the companies said and vowed to divest assets worth up to $1.5 billion within two years. Goldcorp's shareholders, which are also entitled to two cents per share, are projected to own 35% of the new miner.

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