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.
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