- Yamana Gold (YRI) has agreed to sell all of its outstanding common shares to Gold Fields Limited for US$6.7 billion
- Each Yamana share will be exchanged for 0.6 of a Gold Fields ordinary share
- Shareholders will own 61(Gold Fields) and 39 (Yamana) per cent of the combined entity
- Gold Fields will be entitled to a US$300 million termination fee and Yamana to a US$450 million termination fee
- The companies expect to close the deal sometime later this year
- Yamana Gold Inc. (YRI) is up 2.07 per cent trading at $6.89 per share as of 12:21 p.m. ET
Yamana Gold (YRI) has agreed to sell all of its outstanding common shares to Gold Fields Limited for US$6.7 billion.
The agreement has outlined that a single Yamana share will be exchanged for 0.6 of a Gold Fields ordinary share. Post-transaction, Gold Fields and Yamana shareholders will own approximately 61 per cent and 39 per cent of the combined entity.
According to Yamana, its shares need to be acquired by an indirect subsidiary of Gold Fields.
The Gold Fields consideration shares are subject to the approval of at least 75 per cent of the voting rights by Gold Fields shareholders.
The agreement ensures Gold Fields will be entitled to a US$300 million termination fee and Yamana to a US$450 million termination fee.
Gold Fields shares will continue to trade on the Jamaica Stock Exchange and New York Stock Exchange. Meanwhile, Yamana shares will be delisted from the Toronto Stock Exchange, New York Stock Exchange, and London Stock Exchange.
Both companies’ boards unanimously approved the transaction and are expecting it to close sometime later this year.
“We saw significant merit in pursuing discussions with Gold Fields because of the quality of their company on a standalone basis and because of the quality a combination would create. After many months of discussions and conduct of diligence, including site diligence, over a period beginning late last year, we felt even more certain in our premise that Gold Fields was a high-quality standalone company and the company resulting from the combination would be even better,” Peter Marrone, Founder and Executive Chairman of Yamana said.
Yamana Gold Inc. (YRI) is up 2.07 per cent trading at $6.89 per share as of 12:21 p.m. ET.