Gold Fields responds to rival $4.8bn bid for Yamana saying its offer is “strategically superior”

GOLD Fields said a counter-bid for Yamana registered today by Pan American Silver Corporation and Agnico Eagle Mines underpins the value of its own offer which it said was superior to its rivals.

“As we have always said, the complementary nature of Yamana’s assets in the Gold Fields family will create significant near-term and long-term value for all shareholders,” said the South African firm’s CEO, Chris Griffith.

“As a result, it is clear that Gold Fields’ offer remains strategically and financially superior to the joint offer with lower operational and execution risk and higher sustained returns, given Gold Fields enjoys the free cash flow, balance sheet profile and technical capabilities to unlock the full potential of Yamana’s assets,” he added.

Nonetheless, Yamana’s board said in a statement that the joint Pan American Silver/Agnico Eagle offer – consisting of cash and stock totalling $4.8bn – was superior to Gold Fields. Gold Fields’ bid was a scheme of arrangement in which it offered 0.6 of its shares for each Yamana share held.

Shares in Gold Fields closed over 11% higher on the Johannesburg Stock Exchange in the wake of the rival $5bn cash-and-stock deal. US-listed shares of Yamana surged 18% to $4.81 a share by midday in New York. Shares of Pan American Silver fell 5.4% while Agnico Eagle rose 3.9% in US trading.

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