A worker holds a gold bar at South Africa’s Gold Fields South Deep mine in Westonaria, 45 kilometres south-west of Johannesburg, South Africa, March 9, 2017. Photographer Siphiwe Sibeko/File Photo
By Reuters
Australian miner Gold Road Resources, opens new tab has rejected a A$3.3 billion ($2.07 billion) buyout offer from larger peer Gold Fields (GFIJ.J), opens new tab, the South African firm said on Monday.
Under Gold Fields’ offer which was made earlier this month, Gold Road shareholders would have received A$3.05 per share, which represents a 24.5% premium to Monday’s closing price.
With its offer, Gold Fields was aiming to consolidate its ownership over the Gruyere gold mine in Western Australia, its joint venture with Gold Road.
“Despite subsequent discussions, Gold Fields is disappointed that the Gold Road Board has not constructively engaged on key elements of the Proposal,” the South African gold miner said.
As part of the talks, Gold Roads expressed interest in buying out Gold Fields’ 50% stake in Gruyere instead, which the Johannesburg-based firm rejected.
Gold Fields also said that as part of its offer, it intended to vote in favor of Northern Star Resources, opens new tab $3.3 billion buyout of De Grey Mining, which counts Gold Road as its top shareholder.
A Gold Road spokesperson said it would be issuing a statement shortly.