Freeport-McMoRan Completes Plains Deal, $1-per-Share Dividend on Its Way
Gold and copper miner Freeport-McMoRan has completed its acquisition of Plains Exploration & Production and, as previously planned, the board of directors says it will pay investors a supplemental dividend of $1.00 per share that is in addition to the regular quarterly payout of $0.3125 per share.
The Freeport board announced today that the supplemental dividend is payable on July 1 to the holders of record at the close of business on June 14 and will cost approximately $1 billion based on the number of shares outstanding. When paid, this supplemental dividend will be the 11th supplemental dividend paid by Freeport since 2004. Shareholders of Plains will receive a $3-per-share cash dividend today.
Freeport tags the Plains transacation at $16.3 billion, including:
- The assumption of $9.7 billion of PXP debt.
- The payment of approximately $3.3 billion in cash.
- The issuance of approximately 91 million shares of FCX common stock, equivalent to a value of approximately $2.9 billion based on the closing price of FCX's common stock on May 30.
- The value of the $3-per-share PXP special cash dividend.
Freeport's regular dividend payment equates to a $1.25-per-share annual dividend, yielding 4.1% based on the closing price of Freeport-McMoRan's stock on May 30.
The article Freeport-McMoRan Completes Plains Deal, $1-per-Share Dividend on Its Way originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.