Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
I still hold 500 NCM shares. At some time in the future, NEM will take my shares and reallocate me 0.4 NEM shares for each NCM share, eg 500 x 0.4 = 200 NEM shares. NEM are also offering a franked special dividend of $1.10 per share. Will this special dividend be in USD? and will it be based on the reduced share allocation, in my case, 200 shares? Geoff
Hi Geoff,
The $1.10 dividend will be paid in $US as are all Newcrest (NCM) dividends. This fully franked dividend will be paid on the number of NCM shares held on a specific date i.e. not the re-cut NEM holding. Like yourself lets hope the underlying Newmont (NEM US) share price behaves itself because this is the controlling factor in this all script bid.
As at 7.32am on 30th June, the value in the deal for NCM shareholders like us is $27.73 when taking into consideration the ratio to NEM, currency, dividend & franking. This means NCM are effectively trading at 5.24% below the implied bid amount.
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