It's a big day for the Newcrest Mining Ltd (ASX: NCM) shares and the ASX's largest gold miner's shareholders this Thursday. Not that you'd know it from the Newcrest share price's performance so far.
At present, Newcrest shares are going for $23.19 each. That's down a hefty 2% at present from yesterday's close of $23.65.
But this steep fall aside, it remains a monumental day in the history of Newcrest Mining. That's because today, Thursday 26 October, is the last day that Newcrest shares will trade on the ASX.
Investors who have been keeping abreast of news in the ASX gold mining space will be well aware that Newcrest has spent most of this year locked in a corporate courtship. The giant American gold miner Newmont Corporation (NYSE: NEM) has been pursuing a full takeover of Newcrest for most of the year.
The company's last (and successful) offer to acquire Newcrest came back in April. Back then, Newmont offered Newcrest shareholders 0.4 Newmont shares for every Newcrest share owned. That valued the company at $32.87 a share at the time.
In May, this offer was given the green light by the Newcrest board. But it was only earlier this month that Newcrest shareholders voted in an overwhelming 93% majority to go ahead with the takeover.
After all regulatory hurdles were overcome, the scheme was put into effect. Thus, today will be the last day that Newcrest shares will grace the ASX boards. Here's how S&P Dow Jones Indices put it this morning:
S&P Dow Jones Indices announced today that it will remove Newcrest Mining… from the S&P/ASX 200 Index, as a result of the scheme of arrangement whereby the company will be acquired by Newmont Corporation…
S&P Dow Jones Indices will remove Newcrest Mining Limited from the S&P/ASX 200 effective prior to the open of trading on Friday, October 27, 2023. Newcrest Mining Limited will be replaced by Newmont Corporation CDIs (ASX: NEM) in the S&P/ASX 200 effective prior to the open of trading on Friday, October 27, 2023.
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Big ASX news: Newcrest shares to depart ASX 200 forever
As S&P pointed out, it's not exactly the end of the road for Newcrest shareholders though. For anyone who still owns the company as of the end of trading today, their Newcrest shares will be exchanged for ASX-listed CHESS Depository Interests (CDIs) in Newmont Group. That will occur at the rate of 0.4 Newmont CDIs for every Newcrest share owned, as we discussed above.
These Newmont CDIs will represent an indirect investment in the US-listed Newmont. Those Newcrest shareholders will then own a small part of a global gold mining behemoth with a market capitalisation of US$29.22 billion.
Newcrest has been listed on the ASX since 1987. So it's a big deal to see this company depart the stock exchange after more than three and a half decades of ASX membership. Interestingly, Newcrest used to be a part of Newmont prior to the 1980s. As such, this is a bit of a 'back to the future' moment for both companies.
Newmont CDIs will hit the ASX (and ASX 200 Index) tomorrow, where they will trade with the ticker code 'ASX: NEM'.
