Gold Fields, one of the world’s largest gold mining companies, will not adjust its $6.7-billion (R120-billion) bid for Yamana Gold, it said on Monday, despite the emergence last week of a rival joint bid by Agnico-Eagle and Pan American Silver.
Yamana is a Canadian company that owns and operates gold, silver and copper mines in Canada, Chile, Brazil and Argentina. The Toronto-based company currently produces about 1-million ounces of gold and silver from five mines in four countries.
The Johannesburg-based Gold Fields said the emergence of the joint bid does not change its valuation of Yamana. Pan American Silver and Agnico Eagle on Friday made an unsolicited joint offer for Yamana.
The joint bid has offered $1-billion in cash, plus about 153.5-million shares in Pan American, which is listed on Nasdaq, and a further 36.1-million shares in Agnico Eagle, which is listed on New York Stock Exchange.
In comparison, Gold Fields is offering 0.6 of its shares for each Yamana share, implying a valuation of R103.8-billion. The deal, if concluded, will see Gold Fields shareholders own 61% of the combined group and Yamana shareholders the rest.
Gold Fields said its board has unanimously determined that it will not change the terms of the transaction.
“Having considered this 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 believes in 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 the shareholders of both Gold Fields and Yamana when added to Gold Fields’ current portfolio of assets,” the company said.
The proposed Gold Fields and Yamana tie-up will be voted on by the shareholders on November 21 and 22 and requires 75% approval from Gold Fields shareholders and 66.67% from Yamana shareholders.
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