By Nelson Banya and Aadithya Govindrao
(Reuters) -Australia Gold Road Resources said on Monday that she had rejected the 2,1 billion dollars from Gold Fields’ buyback because she thought that the company was considerably under -evaluated and was “very opportunistic”.
Gold Fields CEO Mike Fraser told Reuters that he was still convinced that Gold Road shareholders would support the agreement.
With its offer, the South African minor aims to consolidate the property of the Gruyere gold mine at a long-lasting cost in Western Australia, which it operates under a joint venture with Gold Road.
“The offer does not attribute any value to the potential underground expansion of the Gruyere mine,” said Gold Road in a press release.
Gold Road said he had submitted an alternative offer to buy Guyere gold fields, but his proposal was rejected by the minor based in Johannesburg.
In a press release on Monday, Gold Fields said it was “disappointed that Gold Road Board was not constructively engaged on key elements of the proposal”.
Fraser told Reuters in an interview that there was “a different view of the value from the point of view of management (Gold Road) that the market sees, which is represented by the course of action”.
“We believe that shareholders will love this transaction”, adding that it expects “more transparent conversations with their shareholders and our shareholders around the bottom of this transaction”.
Commitments with certain common shareholders in the Gold and Gold Road fields had shown “solid signals” of support for the agreement, added Fraser.
He said that the imminent redemption of $ 3.3 billion from Northern Star Resources by Norther Resources by De Grey Mining, which has Gold Road as the highest actionary, was one of the main catalysts for Gold Fields’ offer.
Under his proposal, Gold Fields said he intended to vote in favor of the Northern Star transaction.
Golden minors are undergoing a wave of consolidation this year while businesses seek to develop their reserves at a time of price in Lingots Ciel.
Ramelius Resources agreed to resume Spartan resources for $ 2.4 billion last week. In October, Gold Fields bought Osisko Mining for $ 1.93 billion Canadian dollars ($ 1.35 billion), making the full owner of the Windfall project in Canada.
(1 $ = 1.5929 Australian dollars)
(1 $ = 1.4337 Canadian dollars)
(Report by Aadithya Govind Rao in Bengaluru and Nelson Banya in Harare; edition by Eileen Soreng, Mrigank Dhaniwala and Susan Fenton)
