‘Ours is the superior transaction’ – Gold Fields on Yamana Gold deal

Canadian mining company, Yamana Gold, which was initially inclined to a merger agreement with South African company Gold Fields, is now on the fence after two other Canadian mining companies came in with a counter offer to the tune of $4.8 billion.

The two companies, namely Pan American Silver and Agnico Eagle Mines announced a cash-and-stock deal valued at $5.02 a share.

As such, Pan Amercian Silver would completely acquire Yamana. Agnico Eagle on the other hand will buy out Yamana’s Canadian assets.

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Meanwhile, Gold Fields releases a statement on Monday (7 November) saying that the Gold Fields Board has convened to consider the joint offer of Pan American Silver and Agnico Eagle Mines to acquire all of the issued and outstanding common shares of Yamana Gold Inc, based on the information included in the joint press release issued by Pan American and Agnico on 4 November 2022, and the press release issued by Yamana the same day.

Strategically and financially superior to the joint offer

“Having considered this information in consultation with its financial and legal advisers, the board continues to believe that the Gold Fields Transaction, as jointly announced by Gold Fields and Yamana on 31 May 2022, remains strategically and financially superior to the joint offer,” the statement read.

“Consequently, the board has unanimously determined that it will not offer 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 both Gold Fields and Yamana shareholders over the long term.”

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Chris Griffith, Chief Executive Officer of Gold Fields, said: “The board was unanimous in its decision not to offer to change the terms of the transaction as we continue to believe our transaction is strategically and financially superior.

“We believe 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. Gold Fields’ proven financial, technical and ESG track record make it the right custodian for the combined assets.”

Gold Fields says it will continue to work towards completion of the transaction on its current terms for the benefit of the shareholders of both companies in accordance with the Arrangement Agreement.

The meeting of Yamana Shareholders to approve the transaction is scheduled for 21 November 2022.