- Write by:
-
Wednesday, November 9, 2022 - 10:18:59
-
281 Visit
-
Print
Mining News Pro - Toronto-based Yamana said on Tuesday it had inked a deal with the two precious metals miners after South Africa’s Gold Fields (JSE, NYSE: GFI) waived on Monday its right to match the rival bid.
According to Mining News Pro - Agnico Eagle Mines (TSX, NYSE: AEM) and Pan American Silver (TSX, NASDAQ: PAAS) are buying fellow Canadian miner Yamana Gold (TSX: YRI), (NYSE: AUY), (LON: AUY) in a $4.8 billion cash-and-shares transaction.
Toronto-based Yamana said on Tuesday it had inked a deal with the two precious metals miners after South Africa’s Gold Fields (JSE, NYSE: GFI) waived on Monday its right to match the rival bid.
It added that the company’s board now unanimously recommends shareholders reject the Gold Fields takeover at a vote scheduled for November 21.
Gold Fields responded to Yamana’s change in recommendation on Tuesday by saying it was disappointed by the outcome. “We continue to believe that the transaction was a financially and strategically superior offer for shareholders of both Gold Fields and Yamana,” the company said.
The Johannesburg-based miner added it was terminating its arrangement agreement with Yamana, which will have to pay a $300 million break fee to Gold Fields for walking out of their deal within two business days.
“The emergence of another bid highlighted the value of [Yamana’s] assets and the need to respond to systemic strategic challenges facing the gold industry,” Yunus Suleman, chair of Gold Fields, said in the statement. “However, we are disciplined in how we assess the value of assets and opportunities, and we were not prepared to be drawn into a bidding war which would have been value destructive for our shareholders.”
Gold Fields’ initial all-stock offer valued the target at $5bn (C$6.8bn), but a decline of the miner’s share price driven by investor disappointment at the deal and weaker gold prices brought the deal value down to about $4.2bn as of Thursday’s close.
Agnico and Pan American unveiled the rival stock and cash offer on Friday, which contemplates splitting Yamana’s assets in Latin America and Canada between them.
The Gold Fields-Yamana transaction would have created the world’s fourth-largest gold miner, surpassing Agnico Eagle.
With the acquisition of Yamana Gold, Pan American will strengthen its position as a top precious metals producer in Latin America, while Agnico Eagle would consolidate its ownership of one of the world’s biggest gold mines, the Canadian Malartic in Quebec.
Short Link:
https://www.miningnews.ir/En/News/622322
Peru’s dented mining mojo, hit by years of political turmoil in the Andean country, is being buoyed by strong copper ...
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
As BHP Group considers its next move, there’s one big question facing the mining world’s bankers, analysts and ...
Around $7 billion of infrastructure investments in the Democratic Republic of Congo by Chinese companies in a revised ...
Adani Enterprises Ltd., which posted a 38% fall in quarterly profit, said India’s markets regulator has queried it about ...
China’s leading metals companies, including its state iron ore buyer, are considering their next moves following BHP ...
BHP Group (ASX: BHP) has deployed a senior team including its chief executive officer to South Africa as the world’s ...
Barrick Gold Corp.’s chief executive officer says the gold miner will continue to host virtual-only annual general ...
China’s copper producers are planning to export up to 100,000 metric tons of metal, the largest volume in 12 years, ...
No comments have been posted yet ...