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Gold Fields Ltd is making progress in drumming up support for its contentious takeover of Toronto-based Yamana Gold Inc, its chief executive told Reuters on Thursday.
Gold Fields CEO Chris Griffith told the news agency the company is making ‘encouraging progress’.
‘I think most of the shareholders are starting to understand the rationale for the deal, the strategy of the company, why Yamana, why the price,’ Griffith told Reuters in an interview.
A circular concerning the transaction will be posted as soon as late next month, the Gold Fields CEO told Reuters.
https://www.reuters.com/world/africa/gold-fields-sees-progress-winning-investors-over-yamana-deal-2022-08-25/
The task of winning over Gold Fields shareholders has not been easy for the firm's executive teams. Gold Fields shares slumped 20% after it announced the deal at the end of May.
The Johannesburg-listed gold miner will acquire Yamana in deal worth around $6.7 billion.
RWC Partners Ltd, or Redwheel, which owns roughly a 3% stake in Gold Fields, in June said the valuation is a ‘significant 36% premium’ to the Toronto-based firm's closing price a day before the offer was announced.
Although the market responded to the deal with great scepticism, Redwheel was among the first major investors to publicly speak out against it.
Gold Fields shares ended down 1.3% at R 14.813 each in Johannesburg on Thursday. Yamana Gold closed unchanged at 415.00 pence in London on Thursday. In Canada, Yamana shares were 1.2% higher at C$6.38 in late dealings.
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