Lihir Gold Garnering Increased Interest from Major Gold Mining Companies
Lihir Gold (ASE:LGL) is quiet on the news it has opened up access to its data room to Barrick Gold (TSE:ABX) and Newmont Mining (NYSE: NEM).
Newcrest Mining (ASE:NCM), which has already been rejected for its takeover offer for Lihir, has asked that Lihir allows them access to the data room in order to obtain the relevant information needed if they want to make another bid for the company.
Showing posts with label Newcrest Gold. Show all posts
Showing posts with label Newcrest Gold. Show all posts
Tuesday, April 20, 2010
Monday, April 12, 2010
Newcrest (ASE:NCM) and Lihir (ASE:LGL) Deal
Newcrest Mining still interested in Lihir, but not at any cost
The assertion by Newcrest Mining (ASE:NCM) that its offer to acquire Lihir Gold Ltd (ASE:LGL) was "full and fair," along with the invitation to talk more with the company, seems to imply they still want to make a deal, but there isn't going to be any major new offers which would be far beyond the one they already made; although it seems to leave so wiggle room to increase it slightly.
What has been put on the table by Newcrest is to trade of share of Newcrest for nine shares of Lihir, plus an additional 22.5 cent a share. That would also be minus any dividend added by Lihir up till June 30, 2010.
With Newcrest in a strong position as far as its financials go, they don't have to make this deal in order to grow in the future, but it is a deal that should work well for them and Lihir. Newcrest has a market cap of around $24.5 billion with net debt of only about $200 million.
Newcrest said they'll continue to pursue the deal only if shareholders from both companies get value out of it, and the support of shareholders on both sides are there.
Lihir has rejected the offer by Newcrest, believing it undervalues the growth of the company and its current assets.
The assertion by Newcrest Mining (ASE:NCM) that its offer to acquire Lihir Gold Ltd (ASE:LGL) was "full and fair," along with the invitation to talk more with the company, seems to imply they still want to make a deal, but there isn't going to be any major new offers which would be far beyond the one they already made; although it seems to leave so wiggle room to increase it slightly.
What has been put on the table by Newcrest is to trade of share of Newcrest for nine shares of Lihir, plus an additional 22.5 cent a share. That would also be minus any dividend added by Lihir up till June 30, 2010.
With Newcrest in a strong position as far as its financials go, they don't have to make this deal in order to grow in the future, but it is a deal that should work well for them and Lihir. Newcrest has a market cap of around $24.5 billion with net debt of only about $200 million.
Newcrest said they'll continue to pursue the deal only if shareholders from both companies get value out of it, and the support of shareholders on both sides are there.
Lihir has rejected the offer by Newcrest, believing it undervalues the growth of the company and its current assets.
Thursday, April 1, 2010
Lihir Gold (ASE:LGL) Rejects Newcrest (ASE:NCM) Bid
Newcrest fails to acquire Lihir Gold
In the latest of many attempts to increase scale through acquisition among Australian gold companies, this one didn't pan out, as Lihir Gold (ASE:LGL) rejected a $8.45 billion offer from competitor Newcrest Mining (ASE:NCM).
Much of the attempts at consolidating Australian gold mining companies comes from the growing demand from China and India, which seem to have an insatiable appetite for gold and other metals at this time.
The offer by Newcrest was a hefty 28 percent premium over Wednesday's closing share price of Lihir, but Chairman Ross Garnaut said, "It did not include a sufficient premium for control."
Lihir produced 1.12 million ounces of gold in 2009 and is expected to be under that total in 2010, with projections from between 960,000 ounced to 1.06 million ounces.
In the latest of many attempts to increase scale through acquisition among Australian gold companies, this one didn't pan out, as Lihir Gold (ASE:LGL) rejected a $8.45 billion offer from competitor Newcrest Mining (ASE:NCM).
Much of the attempts at consolidating Australian gold mining companies comes from the growing demand from China and India, which seem to have an insatiable appetite for gold and other metals at this time.
The offer by Newcrest was a hefty 28 percent premium over Wednesday's closing share price of Lihir, but Chairman Ross Garnaut said, "It did not include a sufficient premium for control."
Lihir produced 1.12 million ounces of gold in 2009 and is expected to be under that total in 2010, with projections from between 960,000 ounced to 1.06 million ounces.
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