(Yamana) Shares of Yamana Gold rose more than 6% on Tuesday after agreeing to be acquired by Gold Fields Limited at $6.7 billion.
The deal values Yamana at a premium of 33.8% to the 10-day Volume-Weighted Average Price of $5.20 on Friday, May 27, 2022.
Under the terms of the deal, the outstanding Yamana shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields.
Upon the closure of the transaction, Gold Fields shareholders will own about 61% of the combined entity, while Yamana shareholders will own 39%.
Yamana says that the acquisition by Gold Fields strengthens the ability of the combined entity to deliver on the acquirer’s three pillars of maximization of asset potential, growth of asset portfolio’s quality and value, and advancing ESG goals.
The transaction has been approved by the boards of both companies and is expected to be finalized in the second half of the year.
AUY: NYSE is up +6.77%, GFI: JSE is down -18.69%.
