Hanson would sell stake in Newmont

The controlling shareholder of Newmont Mining (NYSE) is negotiating to dispose of its 49% interest in the Denver-based mining company and buy into a lumber company. Hanson of London would sell most of its Newmont holdings, a 42% stake, to General Oriental Investments of Grand Cayman Islands for US$1.1 billion. Hanson would sell the remaining 7% to a subsidiary of British firm St. James’s Place Capital for US$189 million in the form of a note.

General says Newmont has the right to match General’s cash offer within 60 days.

Hanson would purchase General’s principal asset, an 85% interest in Cavenham Forest Industries. Cavenham is a large private owner of U.S. timberlands and a lumber producer.

General says Hanson’s obligation to purchase General’s stock in Cavenham is conditional upon either Newmont or General buying the 42% stake in Newmont at the above-mentioned price.

St. James’s would sell to Hanson its indirect 15% interest in Cavenham for US$189 million in cash.

General says the transaction would allow it to dispose of its only operating subsidiary and to transform General into an investment firm. Its intention, General says, would be to reduce, over time, its holdings in Newmont so as to further diversify its investments.

Newmont Mining owns 90.1% of Newmont Gold (NYSE), which is North America’s largest gold producer.