Gold Fields CEO: Shareholder buy-in for Yamana takeover is still 'work in progress'
Reuters
Published Aug 02, 2022 01:45AM ET
Updated Aug 02, 2022 04:07PM ET
KALGOORLIE, Australia (Reuters) - Gold Fields (NYSE:GFI) Chief Executive Chris Griffith said on Tuesday that convincing the company's shareholders to back its takeover offer for Canada's Yamana Gold (NYSE:AUY) was still a "work in progress".
The South Africa listed miner, with assets in Australia, Africa and South America, announced plans in May to acquire Yamana in an all-share deal valuing the Canada-listed miner at $6.7 billion on May 31.
But shares of Gold Fields plunged after news of the proposed takeover. Last month the miner promised higher dividends and a Toronto Stock Exchange (TSX) listing to sweeten its takeover offer.
The market has started to understand the strategy and the timing of the deal, but is still miffed with the premium the company offered to pay, Griffith told reporters at a mining conference in Kalgoorlie, Australia.
"We are trying to get them to see the massive upside that exists in this deal. So work in progress is probably the best way to describe it," he said when asked if investors and shareholders were on board with the deal.
Gold Fields shareholders will vote on the deal in the second week of October.
Griffith said the company has held a couple of road shows in recent weeks to "educate" shareholders.
Redwheel, one of the 10 biggest investors in Gold Fields, publicly told the miner to cancel the takeover, which it described as an expensive error with no guarantee of growth and profitability.
Gold Fields' shares tumbled 25% in the first few days after the details of the deal and the premium it was paying emerged. But the shares have made a comeback since, Griffith said.
When asked if the deal terms would be changed if there's pushback from shareholders, Griffith said: "The deal structure has been locked in. We don't foresee that we will change the deal structure. But I do say that never say never."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.