Australia’s biggest gold miner knocks back $38 billion takeover bid
Australia’s largest listed gold miner confirmed on Monday it has rejected an unsolicited takeover bid from South Africa’s Gold Fields that valued the company at $38.7 billion.
In a statement to the ASX, Perth-based mining giant Northern Star Resources described the takeover approach as “highly opportunistic”.
Australia’s biggest gold miner, Northern Star, on Monday rejected a takeover offer by South Africa’s Gold Fields . AP
The offer indicated a value of $27 per Northern Star share, representing a 22 per cent premium to the stock’s last close before the proposal was received on September 14.
If the agreement went ahead, Northern Star said its shareholders would have been left significantly exposed to Gold Fields stock, which it said carried a higher risk profile.
Chairman Michael Chaney said Northern Star was one of the “world’s premier gold portfolios”, and the price offered by Gold Fields was way below what the board believed was its fundamental value and came at a “highly opportunistic time”.
“Gold Fields has asked our shareholders to take nearly three-quarters of the consideration in Gold Fields stock, which carries a meaningfully higher jurisdictional risk profile than the exposure they hold today,” he said.
“These factors, in conjunction with the conditionality of the indicative proposal, are the basis on which the board has unanimously rejected” the offer, he said.
Northern Star shares jumped 9 per cent on Monday after news it had rejected the Gold Fields’ offer.
In July, Northern Star appointed new managing director Suresh Vadnagra following pressure on the board from activist investor Elliott Investment Management for a strategic shake-up.
– with Reuters
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