Yamana Gold does U-turn on merger with JSE-listed Gold Fields

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Canada’s Yamana Gold is walking away from a proposed merger with JSE-listed Gold Fields after accepting a $4.8bn (about R85bn) rival offer from Agnico Eagle Mines and Pan American Silver Corp.

Yamana said on Tuesday that the board had changed its previous recommendation and recommended shareholders vote against“The board has unanimously determined in good faith, after consultation with its outside financial and legal advisers, and upon the unanimous recommendation of the special committee of independent directors of the board, that the Agnico-Pan American transaction is a 'Yamana Superior Proposal' in accordance with the terms of [the] Gold Fields arrangement agreement,” it...

Yamana said the Agnico-Pan American arrangement agreement would become effective upon the Gold Fields arrangement agreement not being approved by shareholders, unless Gold Fields elected to terminate its arrangement agreement before then.Gold Fields, which operates South Deep in Westonaria and the Salares Norte project in Chile, offered to buy Yamana at the end of May in an all-in share offer valued at $6.7bn .

However on Friday Yamana announced that Pan American and Agnico Eagle had tabled a rival cash-and-stock deal valued at $5.02 a share. Yamana gave Gold Fields five working days to match it and on Monday the latter elected not to, saying it had unanimously decided not 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 Gold Fields and Yamana shareholders over the long term,” Gold Fields said.

 

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Business Maverick: Gold Fields Rules Out Raising Yamana Offer After Rival BidGold Fields Ltd. said it won’t raise its offer for Yamana Gold Inc. after two Canadian rivals teamed up with an unsolicited $4.8 billion bid to break up an earlier merger agreement with the South African miner.
Source: dailymaverick - 🏆 3. / 84 Read more »