Gold Fields sweetens deal with Yamana to woo investors

  • Gold Fields Seeks Listing on Toronto Stock Exchange
  • Offers to return more cash to shareholders
  • CEO Says Gold Industry Consolidation Is Just Beginning

July 11 (Reuters) – South African firm Gold Fields (GFIJ.J) pledged higher dividends and a listing on the Toronto Stock Exchange (TSX) on Monday to sweeten its plan to buy Canadian firm Yamana Gold (YRI .TO).

The miner announced plans to acquire Yamana in an all-stock deal valuing the Canadian-listed miner at $6.7 billion on May 31, but market reaction was largely negative and shares of Gold Fields fell 20% that day. Read more

Gold Fields CEO Chris Griffith told reporters on Monday he was “strongly encouraged” by the “constructive” discussions with shareholders over the proposed deal, which the company says would create the world’s fourth-largest gold producer. in the world in terms of production.

Join now for FREE unlimited access to Reuters.com

Register

The company, which has a primary listing on the Johannesburg Stock Exchange, said it would declare an interim and final dividend of up to 45% of normalized earnings each year, up from a previous payout range of 25-35%.

“It’s really to reassure shareholders that there will be a cash return to shareholders. It sends a message about our confidence in the deal,” Griffith said.

He added that consolidation in the gold industry has only just begun and now is the time to buy out Yamana for its quality assets.

Redwheel, one of the 10 largest investors in Gold Fields, last month publicly called on the miner to reverse the takeover, which it described as a costly mistake with no guarantee of growth and profitability. Read more

“We believe the acquisition of Yamana fits our strategy to increase the value and quality of our portfolio, creating a winning combination of excellent assets with complementary operating strengths,” said Griffith.

Griffith added that the deal with Yamana would give Gold Fields – which has operations in South Africa, Australia, Ghana and Peru as well as a project in Chile – a foothold in Canada and potential savings in North America. South.

Gold Fields shares were down 2.2% at 0852 GMT.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Nelson Banya Additional reporting by Helen Reid Editing by Kirsten Donovan and David Goodman

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.