Advisory firms urge favourable vote for Newcrest takeover of Pretium
Canadian miner Pretium Resources says proxy advisory firms Glass Lewis & Co and Institutional Shareholder Services (ISS) have recommended that the company’s shareholders vote in favour of the proposed takeover of Pretium by global miner Newcrest.
Newcrest in November last year offered to take over Pretium in a deal worth $2.8-billion, which offers Pretium shareholders the right to receive C$18.50 a share in cash or 0.8084 of a Newcrest share for each Pretium share held.
Pretium owns the Brucejack operation in the highly prospective Golden Triangle region of British Columbia.
ISS says the transaction makes strategic sense as the consideration provides shareholders with optionality to either receive certain and immediate value in the form of cash, or the ability to receive shares of Newcrest and participate in the upside represented by the combined entity.
Glass Lewis believes the merger will result in a larger, more diversified gold producer, with the opportunity to achieve meaningful synergies.
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