Gold Fields says it won’t be revising Yamana offer despite competing bid | Fin24

Gold Fields CEO Chris Griffith.

The board of Gold Fields has unanimously resolved not to revise its offer for the takeover of Yamana Gold following a competing ‘superior proposal’ from Agnico Eagle Mines Limited and Pan American Silver.

On Friday, Yamana, a precious metals producer with assets in Canada, Brazil, Chile and Argentina, said the $5 billion (R90 billion) cash-and-stock deal was superior to Gold Fields’ and gave the company five days to amend the terms of its all-share offer.

The offer of 0.6 Gold Fields share per Yamana share was worth about $6.7 billion at the time it was announced in May, but JSE and New York listed Gold Fields had crashed after the news, with analysts citing the about 30% premium being paid. Since the end of May, shares of Gold Fields have declined 30%, meaning its offer is currently worth less in dollar terms than that of its rival consortium’s.

Yamana had said on Friday that while the new offer was the “superior proposal,” there was no assurance that it would lead to a termination of the Gold Fields offer. It has also not changed the stance of stance Yamana’s board to the Gold Fields offer, which the board has unanimously recommended that shareholders accept. 

Gold Fields said on Monday that having considered the new information in consultation with its financial and legal advisers, “the board continues to believe that the Gold Fields Transaction remains strategically and financially superior to the joint offer.” 

Gold Fields maintains that “the highly complementary fit of Yamana’s operating assets and its extensive pipeline of future growth projects will create significant near-term and long-term value for its shareholders as well as Yamana when added to Gold Fields’ current portfolio of assets.”

“Consequently, the board has unanimously determined that it will not offer to change the terms of the transaction. In coming to this determination, the board has taken into account its commitment to capital discipline and considered the fairness of the transaction to both Gold Fields and Yamana shareholders over the long term,” it said.

The meeting of Yamana Shareholders to approve the Transaction is scheduled for 21 November and the Gold Fields General Meeting to approve the Transaction is scheduled for the following day.

In early trade on the JSE on Monday, shares of Gold Fields were up 0.63% at R155.02, having leapt 11% on Friday, when Yamana made its announcement. Click here for more details on the shares of Gold Fields and other info.