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June 13, 2022

Gold Fields shareholder urges to scrap Yamana takeover deal

Redwheel cites that the takeover bid by Gold Fields offers no guarantee on profitability and production growth.

One of the investors in South Africa’s Gold Fields has called on the company to withdraw its all-share offer to acquire Canada-based Yamana Gold, citing the deal would be too expensive, reported Financial Times (FT).

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Holding a 3% stake in Gold Fields, Redwheel said that the South African company should focus on the ‘excellent organic growth options which it already owns’ as the takeover proposal offers no guarantee of profitability and production growth.

According to the $6.7bn deal signed last month, Yamana shareholders can redeem their shares for Gold Fields shares at a swap ratio of 0.6.

This would create a top-four global gold major having a diversified portfolio of long-life assets.

Gold Fields is required to secure 75% of shareholder support for the deal to be approved whereas Yamana requires about 67%.

Redwheel was quoted by the publication as saying: “Based on Gold Fields own current project pipeline, we expect that it can drive current production to over 2.7 million (ounces) by 2025 before trending down to two million ounces.

“This production growth is already one of the strongest across the major gold miners globally. We believe the company has ample time to be opportunistic over the next few years rather than rushing into a significantly dilutive acquisition today.”

Gold Fields plans to continue engaging with its shareholders over the proposed transaction’s merits.

The South African gold miner was cited by FT as saying: “By combining Gold Fields’ cash generative gold mines with Yamana’s immediate and longer-term pipeline of high-quality, long-life assets, we believe this transaction will secure the best interests of the company and its shareholders.”

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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