Mergers & Acquisitions Report
Gold Fields Ltd. to Acquire Yamana Gold Inc.
May 30th, 2022
This report provides a summary of Gold and Precious Metal Funds that hold:
1) The acquired company only: Yamana Gold Inc. (TSX-V: YRI)
2) The acquirer only: Gold Fields Limited (NYSE: GFI)
3) Both the acquirer and acquired company.
On Monday 30th, May, 2022, South Africa-based Gold Fields Ltd. (NYSE: GFI) agreed to buy Yamana Gold Inc. (TSX-V: YRI) in an all-stock deal that values Yamana at $6.7 billion USD. If the deal is approved, Gold Fields Ltd. shareholders will end up with 61% of the combined $15.6 billion USD company, and Yamana Gold Inc. shareholders will hold the remaining 39%.
Gold Fields Ltd. (NYSE: GFI) is paying a 34% premium to the weighted average share price of Yamana Gold Inc. (TSX-V: YRI) shares calculated over the 10 trading days immediately preceding the transaction. Gold Fields Ltd. shares fell 11% on the news as investors considered these payment terms. Yamana Gold Inc. shareholders are set to receive 0.6 of a Gold Fields Ltd. share. The Transaction implies a valuation for Yamana Gold Inc. of US$6.7 billion and represents a premium of 33.8% to the 10-day Volume-Weighted Average Price (“VWAP”) of Yamana Gold Inc.'s shares, calculated at US$ 5.20 on Friday, May 27th, 2022.
Gold Fields Ltd. (NYSE: GFI) merging with Yamana Gold Inc. (TSX-V: YRI) will create world's fourth biggest gold miner.
7 Funds show as holding Yamana Gold Inc. (TSX-V: YRI) exclusively, and will be the biggest performance beneficiaries from this transaction:
Source: https://mineralfunds.com/gold-funds/
MineralFunds.com provides prices, performance and trade information for all the world’s metal ETFs including: Precious Metals, Battery Metals, Platinum Group Metals and Base Metals and comprehensive fund information, including asset allocations, for Gold & Precious Metals Managed Funds from all investment jurisdictions.
Report prepared by: Kay Samnani, Analyst and Christopher J. Berlet BSc, CFA
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