The Newcrest Mining Ltd (ASX: NCM) share price is pushing higher on Thursday morning.
At the time of writing, the gold miner's shares are up over 2% to $25.86.
Image source: Getty Images
Why is the Newcrest share price rising?
There have been a couple of catalysts for today's gain. The first is a rise in the gold price, the other is an update on its proposed takeover by Newmont Corporation (NYSE: NEM).
In respect to the former, the spot gold price climbed overnight after US treasury yields softened, boosting the allure of the precious metal.
This has helped drive other ASX gold shares higher today, which has taken the S&P/ASX All Ords Gold index 1.6% this morning.
Takeover update
Also boosting the Newcrest share price has been news that its proposed takeover by Newmont Corporation has taken a major step forward.
According to an announcement, Newmont stockholders have approved the issuance of shares of Newmont common stock to Newcrest shareholders pursuant to the proposed scheme of arrangement.
This essentially means that they approve the takeover of Newcrest.
So, now it is over to Newcrest shareholders to decide if they want to accept Newmont's offer of 0.400 Newmont shares for each Newcrest share held, as well as a fully franked US$1.10 per share special dividend.
Based on the current Newmont share price, this equates to an offer of US$16.75 per share (A$26.10 per share) plus franking credits.
Newcrest shareholders will be able to vote on the takeover at the scheme meeting in Melbourne on Friday. If they give the deal the thumbs up, that US$1.10 per share fully franked dividend will be paid to them later this month on 27 October.
