Aussie gold miners Newcrest Mining Ltd
(ASX:NCM) and Lihir Gold Ltd
(ASX:LGL) have today announced that the two companies have entered into a merger implementation agreement.
If approved Lihir shareholders will receive one Newcrest share for every 8.43 Lihir shares they hold plus $0.225 cash a share, less any interim dividend declared or paid by Lihir for the half year to June 30, 2010.
Based on Newcrest’s closing price of $32.06 yesterday, the offer values Lihir Gold at approximately $9.5 billion, an improvement of 6.4% on Newcrest’s previous proposal.
The directors of Lihir unanimously recommend that shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an independent expert’s opinion that the Scheme is in the best interests of Lihir shareholders.
Newcrest chairman Don Mercer says the combined organisation will be Asia-Pacific’s leading gold producer.
Lihir chairman Ross Garnaut says the company is pleased to have secured an improved proposal that it can recommend to its shareholders.
Lihir Gold reported a $260.9 million loss for 2009, while Newcrest Mining earned $248.1 million in fiscal 09.
