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Gold Fields share price plunges on R100bn takeover deal, but miner says it 'ticks the boxes'

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Chris Griffith, Gold Fields CEO.
Chris Griffith, Gold Fields CEO.
Getty Images

While Gold Fields believes its proposed R100 billion takeover of a Canadian precious metals miner will give the group a new lease on life, the announcement sent the share price spiralling down 20% on Tuesday as shareholders grappled with the potential impact on their investment.

Gold Fields, a JSE-listed multinational gold producer and owner of the South Deep mine in Johannesburg, on Tuesday announced its intent to acquire leading Canadian precious metals producer Yamana Gold, which will diversify the group’s portfolio, adding high-quality long-life assets.

The price tag is generous, with Gold Fields offering 0.6 of its shares for every Yamana share acquired – pegging the transaction at an implied value of $6.7 billion (about R104.6 billion).

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Rand - Dollar
18.01
-1.3%
Rand - Pound
20.11
+0.1%
Rand - Euro
17.64
-0.4%
Rand - Aus dollar
11.55
-0.0%
Rand - Yen
0.12
-1.0%
Gold
1,713.07
-0.2%
Silver
20.66
+0.1%
Palladium
2,253.50
-0.2%
Platinum
925.00
+0.3%
Brent-ruolie
93.37
+1.7%
Top 40
59,416
+0.4%
All Share
65,833
+0.3%
Resource 10
63,279
-0.6%
Industrial 25
80,027
+1.0%
Financial 15
13,997
+0.3%
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