Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, January 25, 2019

Article Excerpt

NEWMONT MINING CORP., $33.16, symbol NEM on New York, is one of the world’s largest gold and copper producers. Its mines are in North America, South America, Australia and Africa. The company has agreed to a friendly merger with Vancouver-based Goldcorp Inc., symbol GG on New York. The new company—called Newmont Goldcorp—will be the world’s largest gold mining company, producing between 6 million and 7 million ounces annually. Under the terms of the deal, Goldcorp shareholders will receive 0.3280 of a Newmont share plus $0.02 for each share they hold. Based on Newmont’s current share price, the deal is worth $9.1 billion. That’s equal to 52% of its current market cap (the total value of all outstanding shares). Following the merger, Newmont investors will own 65% of the combined company with Goldcorp shareholders holding the remaining 35%. The Americas will account for 75% of its reserves, followed by Australia (15%) and Ghana (10%). The new company also plans to sell between $1.0 billion and…

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