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Northern Star rejects Gold Fields' $27 billion bid to create world's No.2 gold miner
The board said the offer was made ahead of near-term growth catalysts and would leave shareholders with higher jurisdictional risk.
- Australia's top gold producer, Northern Star Resources, formally rejected an unsolicited $27.1 billion stock-heavy takeover proposal from South Africa's Gold Fields.
- The proposed combination would have created the world's second-largest gold mining company, boasting a combined annual production capacity of approximately 4.1 million ounces.
- Northern Star's board described the offer as "highly opportunistic," stating that it significantly undervalued the company's tier-one asset base, long-life mines, and upcoming growth catalysts.
- Chairman Michael Chaney highlighted that the all-share offer structure exposed Northern Star shareholders to greater jurisdictional risks and failed to account for the value of the company's major Fimiston Mill expansion.
- Northern Star shares surged nearly 11% on the Australian Securities Exchange following the announcement, reflecting investor confidence in the board's decision and anticipation of potential revised offers.
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Competitor Gold Fields wants to take over the Australian gold company for around 24 billion euros. However, from the perspective of Northern Star, this offer is not enough.
·Düsseldorf, Germany
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Northern Star turns down $38 billion Gold Fields bid
Image: Timon/stock.adobe.com Northern Star has rejected a recent confidential acquisition bid from Gold Fields, with the proposal described as falling to “reflect the fundamental value” of the Kalgoorlie Consolidated Gold Mines (KCGM) operator’s asset base. The acquisition offer made on September 14 – which would see Gold Fields acquire 100 per cent of fully paid ordinary shares […] Australian Mining.
Coverage Details
Total News Sources31
Leaning Left5Leaning Right4Center7Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 31%
C 44%
R 25%
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