South African mining giant Gold Fields is poised to acquire Canadian company Yamana.
Gold Fields has mining assets in Australia, including a 100 per cent interest in the St Ives, Agnew and Granny Smith mines and a 50:50 interest in the Gruyere JV project with Gold Road Resources, located in the Yilgarn area of Western Australia.
Under the terms of the transaction, all of the outstanding Yamana shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields or 0.6 of a Gold Fields American depositary share for each Yamana share.
Upon closing of the transaction, it is anticipated that Gold Fields shareholders and Yamana shareholders will own about 61 per cent and 39 per cent of the combined group, respectively.
The acquisition of Yamana by Gold Fields significantly strengthens the ability of the combined company to deliver on Gold Fields’ three strategic pillars: maximising asset potential; advancing ESG commitment; and growing the value and quality of its asset portfolio.
The group has the potential to create significant long-term value for shareholders through greater scale, an industry-leading portfolio of assets, an enhanced production profile with significant growth potential, operational and geological synergies, and a strengthened financial profile for future growth and shareholder returns.
It will maintain its presence in all regions while continuing to honour commitments to stakeholders.
The transaction has been unanimously approved by the Board of Directors of both Gold Fields and Yamana and is expected to close in the second half of 2022. Gold Fields will remain headquartered in Johannesburg.