TORONTO — Gold Fields Ltd. has signed a deal to buy Yamana Gold Inc. in an deal valued at US$6.7 billion.
The companies say the deal will bring together two complementary gold portfolios.
Under the agreement, Yamana shareholders will receive 0.6 of an ordinary share in Gold Fields or 0.6 of a Gold Fields American depositary share for each Yamana share. The companies say the offer is a 33.8 per cent premium to the 10-day volume-weighted average price of Yamana’s shares on Friday.
Toronto-based Yamana has gold and silver production, development stage properties, exploration properties, and land positions in the Americas, including Canada, Brazil, Chile, and Argentina.
The deal, which has been unanimously approved by the boards of directors at both companies, requires approval by Yamana and Gold Fields shareholders as well as the court and other regulatory approvals. It is expected to close in the second half of this year.
Once the transaction is complete, Gold Fields shareholders will hold about 61 per cent of the combined company, which will be headquartered in Johannesburg. Yamana shareholders will own about 39 per cent.
This report by The Canadian Press was first published May 31, 2022.
Companies in this story: (TSX:YRI)
