Australia’s largest gold mining company Northern Star Resources reviewed and rejected an acquisition proposal from South Africa’s Gold Fields. The proposal was valued at A$38.7 billion and consisted of a combination of cash and shares.
Australia’s largest gold producer Northern Star Resources announced on 28 September that it had rejected an acquisition proposal from Gold Fields. The proposal was a combination of cash and shares and was valued at A$38.7 billion (approximately ¥4.29 trillion).
Under pressure from Elliott Investment Management, the company deemed the proposal opportunistic and concluded that it did not reflect the intrinsic value of its assets and growth opportunities. It also pointed out that the proposal came ahead of the appointment of new CEO Suresh Vadnagra (スレシュ・ヴァドナグラ).
While Gold Fields emphasized the scale of its mines and assets in Kalgoorlie, Western Australia, the proposed price represented a 22% premium. Northern Star shares rose temporarily, but the company stated that it would not continue discussions.
Market participants noted that Gold Fields is taking an aggressive stance against the backdrop of increased M&A activity as gold prices trend higher, while Northern Star has previously lowered its production outlook.
Chair Michael Chaney (マイケル・チェイニー) criticized Gold Fields in a release, saying it had sought to acquire the company at a price “well below intrinsic value.”