Pretivm approves acquisition by Newcrest (ASX:NCM)

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Pretivm approves acquisition by Newcrest (ASX:NCM)

ASX:NCM, Newcrest Mining Limited, Pretivm acquisition, share price, ASX, M&A
Image source: © Timonschneider | Megapixl.com

Highlights 

  • Newcrest Mining’s acquisition offer gets an approval from Pretivm securityholders.
  • The acquisition can position Newcrest well in the British Columbia's Golden Triangle region.
  • NCM shares lose yesterday’s gold spot backed shine, fall 1.136% on ASX.

Gold focused miner, Newcrest Mining Limited (ASX:NCM) share price has taken a downturn on ASX today. NCM shares could not sustain yesterday’s gains, which were backed by gold commodity price momentum. The major announcement related to Newcrest today is the approval it received from Pretivm securityholders on an acquisition offer made.

The stock ended today’s session at AU$25.260 per share, down 1.136%.

How will Newcrest benefit from Pretivm acquisition?

  • In November, Newcrest had entered into an agreement to acquire the Canadian exchange listed Pretium Resources Inc.’s (TSX:PVG) (Pretivm).
  • Pretivm is the owner and operator of the highly prospective Brucejack operation in the Golden Triangle region of British Columbia.
  • Though today, Pretivm securityholders have approved Newcrest’s acquisition proposal, it has to be cleared by the TSX.
  • If the acquisition happens, it will position Newcrest as a leading gold miner in British Columbia’s Golden Triangle.

What was Newcrest offering Pretivm?

  • Newcrest had offered cash and NCM shares to Pretivm shareholders. Pretivm securityholders were to choose between CA$18.50 in cash or 0.80847 NCM shares for each Pretivm share held.
  • Pretivm shareholders have via a special resolution approved NCM’s acquisition
  • Those who did not elect either cash or shares will thus receive a default consideration of 50% cash and 50% NCM shares, being CA$9.25 in cash and 0.4042 NCM shares for each.
  • Other shareholders, who have elected to receive maximum cash consideration shall get about CA$10.81 in cash and 0.3357 NCM shares.
  • Those Pretivm shareholders who have chosen to receive maximum share consideration will get 0.8084 NCM shares for each Pretivm share held.

Subject to approval from TSX, transaction completion shall probably occur in the March quarter of 2022.

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