Gold Fields Acquires Yamana Gold For $6.7B

Gold Fields Limited (GFI and Yamana Gold Inc. YRI AUY entered into a definitive agreement.

What Happened: Under the agreement, Gold Fields will acquire all of the outstanding common shares of Yamana. 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 ADS for each Yamana Share.

The deal implies a valuation for Yamana of $6.7 billion and represents a premium of 33.8% to the 10-day Volume-Weighted Average Price of Yamana's Shares of $5.20 on May 27, 2022.

Gold Fields Shareholders and Yamana Shareholders will own ~61% and 39% of the combined group, respectively.

Why It's Important: The acquisition significantly strengthens the ability of the combined company to deliver on Gold Fields' three strategic pillars: maximizing asset potential, advancing ESG commitment, and growing the value and quality of its asset portfolio.

The transaction has been approved by the Board of both Gold Fields and Yamana and is expected to close in the second half of 2022.

Gold Fields will remain headquartered in Johannesburg.

Gold Fields had $524.7 million in cash as of December 2021.

Following the completion of the transaction, the Gold Fields Shares will continue to trade on the JSE, and the Gold Fields ADSs will continue to be listed on the NYSE, while the Yamana shares will be delisted from TSX, NYSE, and LSE.

Price Action: AUY shares are trading higher by 15.67% at $5.17 and GFI lower by 11.23% at $10.83 during the premarket session on Tuesday.

Photo Via Company

Posted In: CanadaM&ANews

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.