INVESTORS AND MEDIA In the news
Gold Fields CEO Chris Griffith is preparing to lead a final roadshow to nudge shareholders to vote in favour of its $6.7bn (R123.4bn) acquisition of Canada's Yamana Gold.
Gold Fields requires 75% of its shareholders to vote for the transaction during the company's general meeting scheduled for next month.
Griffith told journalists on Monday that while the company had engaged its shareholders since the deal was announced at the end of May, it would not leave anything to chance.
"We have the potential to see some of our existing shareholders. There is a potential to see new shareholders and there is a potential to see what we think could be future shareholders," adding it was part of the marketing plan to clear the final hurdle.
He said most shareholders supported the deal.
"I would say there is an optimistic view that things are heading in the right direction," he said.
Yamana, headquartered in Toronto, operates the underground Wasamac project in Quebec and the MARA project in Argentina, while Gold Fields' operations include the South Deep mine outside Johannesburg and Salares Norte in Chile.
In its circular on Friday, Gold Fields told shareholders that Yamana offered an "impressive combination of high-quality, long-life and low-cost operational assets".
Gold Fields also said Yamana offered the opportunity to expand its jurisdictional profile because Yamana mines were all located in resource-rich regions supportive of mining operations.
However, in May some shareholders raised concerns that the $6.7bn price tag was dilutive and overvalued Yamana, sending Gold Fields shares down 20% on the day of the announcement.
Griffith said an independent valuation report by the Canadian Imperial Bank of Commerce had valued Yamana's mineral assets at $6bn to $8bn, in line with the company's initial offer price.
Griffith told journalists that Gold Fields had paid a premium to the market cap of the day, as Yamana had traded at a discount to the Gold Fields share price. Griffith said while the company had paid a premium, it needed to pay a premium to ensure the deal could be consummated.
"What is confirmed by the independent valuation report is that we have not overpaid for these assets, and that there is substantial value still left for the combined company to unlock in the new company going forward. It is a very positive message for the combined shareholders of this new company," he said.
Gold Fields previously said it had enhanced its dividend policy and would pay a dividend of between 30% and 45% after the implementation of the deal.