Goldcorp has obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving the previously announced plan of arrangement, whereby Newmont will acquire all outstanding common shares of Goldcorp.
The acquisition of share will be in exchange for 0.3280 of a share of Newmont common stock and $0.02 in cash for each Goldcorp common share.
Receipt of the final order follows Goldcorp’s special meeting of shareholders held on April 4, 2019, where the Arrangement was overwhelmingly approved by 97% of the votes cast by shareholders. Newmont’s special shareholder meeting will take place on April 11, 2019, where its stockholders will be asked to vote on the issuance of Newmont common shares in connection with the proposed transaction with Goldcorp.
Newmont and Goldcorp expect the transaction to close in the second quarter of 2019, subject to approval by Newmont shareholders and the satisfaction of customary closing conditions and regulatory approvals.
Immediately upon the closing of this transaction, the combined entity will be called Newmont Goldcorp, and is expected to:
Target 6-7 million ounces of steady-state gold production over a decades-long time horizon;
Begin delivering a combined $365 million in expected annual pre-tax synergies, supply chain efficiencies and Full Potential improvements representing the opportunity to create $4.4 billion in Net Present Value (pre-tax);
Have the largest gold Reserves and Resources in the gold sector, including on a per share basis;
Be located in favorable mining jurisdictions and prolific gold districts on four continents;
Deliver the highest dividend among senior gold producers;
Offer financial flexibility and an investment-grade balance sheet to advance the most promising projects generating a targeted Internal Rate of Return (IRR) of at least 15 percent;
Feature a deep bench of accomplished business leaders and high-performing technical teams and other talent with extensive mining industry experience; and
Maintain industry leadership in environmental, social and governance performance.
Source: Company Press Release