Movers: Activision Blizzard, Microsoft, Magellan Midstream, Newmont Corp, OneOK, shake Snack

Scott Peters
15 May, 2023
New York City

Newmont Corporation increased 1.4% to $46.60 after the company and Australia-based Newcrest Mining Ltd reached a binding agreement to proceed with the proposal to acquire 100% of Newcrest. 

Newmont agreed to pay 0.4 of Newmont share for each Newcrest share held and shareholders will be entitled to receive a special dividend of up to US$1.0 a share just ahead of the completion of the deal. 

After considering the full amount of the special dividend, the deal value Newcrest Mining at A$29.27 a share an implied equity value of A$26.2 billion and enterprise value for Newcrest of A$28.8 billion

Newcrest shareholders will own 31% of the combined group and value the company at a 30.4% premium to Newcrest’s closing price of A$22.45 per share on February 3, before the first announcement of the deal.  

Microsoft Corp increased 0.1% to $309.40 after the European Union's regulatory arm approved the purchase of Activision Blizzard for $69 billion.  

Activision Blizzard Inc increased 1.1% to $78.27.  

Shake Shack Inc soared 9.5% to $71.26 after activist investor Engaged Capital acquired 6.6% stake in the company and the investor is looking to plan a proxy request to add three seats on the company board.

The news was first reported by the Wall Street Journal. 

Magellan Midstream Partners LP jumped 13.6% to $63.04 after the company agreed to be acquired by OneOk, Inc for about $18.8 billion. 

OneOk, Inc declined 8.5% to  $58.18. 

OneOk agreed to pay $25.0 in cash and 0.6670 shares of ONEOK common stock for  each outstanding Magellan common unit, representing a current implied value to each Magellan unitholder of $67.50 per unit, a 22% premium, based on May 12 closing prices. 

 The transaction is expected to  be earnings per share accretive beginning in 2024 with EPS accretion of 3% to 7%  per year from 2025 through 2027, and free cash flow per share accretion averaging more  than 20% from 2024 through 2027.

The combined company is estimated to generate an average annual $1.0 billion in free cash flow in the first four years following the close of the transaction.