Proxy advisory firm Institutional Shareholder Services (ISS) has recommended that Newmont shareholders vote in favour of the US major’s $10-billion takeover of Canadian miner Goldcorp at a general meeting next month.
ISS said on Tuesday that a vote for the proposal was warranted, given the “solid strategic rationale” and expected financial benefits, which were bolstered on Monday by the addition of a 88c a share special dividend.
Newmont announced the special dividend in response to mounting criticism from two large shareholders – VanEck and Paulson & Co – over what they believe was an unfair benefit that Goldcorp shareholders would receive from a joint venture between Newmont and Barrick.
The venture was announced after the terms of the Newmont-Goldcorp transaction were decided.
The special dividend announcement has reportedly won over VanEck and Paulson, which now support the transaction.
“We are pleased that ISS recognises the compelling value proposition of the Newmont-Goldcorp combination to create an unmatched portfolio of world-class operations, projects, exploration opportunities, reserves and talent in the gold mining sector. We look forward to completing the transaction with Goldcorp, and urge all Newmont shareholders to follow the recommendation of ISS and Newmont’s board of directors by voting ‘for’ each of the resolutions relating to the proposed combination with Goldcorp at the upcoming special shareholder meeting,” said CEO Gary Goldberg in a statement.
ISS previously recommended that Goldcorp shareholders approve the transaction when they vote on April.
Newmont shareholders will decide on the merger on April 11.
Goldberg stated that the transaction should close in the second quarter.