Gold Fields said on Tuesday that it has terminated the agreement to acquire Yamana Gold, and expects to be paid a $300 million (R5.3 billion) break fee within two business days, under the terms of the arrangement agreement.
In a statement, Gold Fields said as a result of Yamana entering into an arrangement agreement with Pan American Silver Corp and Agnico Eagle Mines Limited and announcing a change in recommendation, Gold Fields has terminated the arrangement agreement in respect of the transaction.
“Gold Fields is disappointed by this outcome and continues to believe that the transaction was a financially and strategically superior offer for shareholders of both Gold Fields and Yamana.
“Nonetheless, following Yamana’s change in recommendation, Gold Fields believes the most disciplined and prudent course of action to maximise Gold Fields’ shareholder value is to terminate the Arrangement Agreement.
“Gold Fields and its shareholders will now benefit from the termination fee,” Gold Fields said.
This follows Yamana advising its shareholders on Tuesday that it entered into an agreement with Pan American and Agnico in respect of the joint offer for Yamana.
Yamana said following the waiver by Gold Fields of its five business day matching right and response period under the arrangement agreement, the Yamana board changed its recommendation concerning the arrangement and the transaction with Gold Fields, and now unanimously recommends that Yamana shareholders vote against the transaction at the Yamana Meeting.
On Friday, Yamana announced that it had received a “superior” cash and share offer from Pan American and Agnico and gave Gold Fields an option to revise its offer.
Golf Fields refused to revise its offer as it believed it was financially and strategically “superior offer”.
BUSINESS REPORT