Why does MM regard the “Newmont CDI” as annoying?
Hi James, 1)Just wondering why you considered the Newmont CDI to be "annoying"? 2)Will the NEM CDI still have "franking credits", if the takeover of NCM is succesful? Richard Ho
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Answer
Hi Richard,
The Newmont CDI will only be as annoying as the Resmed CDI, insofar as an additional form needs to be completed and submitted to the share registry to stop them applying withholding tax on dividends paid. From experience, they often ‘stuff this up’!
Dividends will not be franked; investors will simply have exposure to the US vehicle (Newmont) but it will traded on the ASX as a CDI (Chess Depository Interest). Newcrest down intend to pay a large fully franked dividend at completion of the deal.
- We are looking for an ideal opportunity to switch our NCM into another ASX listed company but we’re being pedantic on price/value. As of Saturday Morning, NCM is trading at 4.57% discount to the implies bid amount.
