By Adam Whittaker
Gold Fields said it has made an offer to buy Australian miner Gold Road Resources in a $2.1 billion all-cash deal.
The South African gold miner said Monday that it has offered to buy all of Gold Road's issued shares for 3.05 Australian dollars a share.
Its offer is a 28% premium to Gold Road's closing share price on March 21 and gives the miner an equity value of 3.3 billion Australian dollars ($2.07 billion), Gold Fields said.
A spokesperson for Gold Road didn't immediately comment.
Gold Fields said that a previous approach made on March 7 also for 3.05 Australian dollar a share was rejected by Gold Road's board.
After rejecting the initial offer, Gold Road proposed to buy the remaining 50% stake of the joint venture in the Gruyere mine they have with Gold Fields. However, Gold Fields won't proceed with this proposal, it said Monday.
Consolidating the remaining interest in Gruyere through the acquisition would remove inefficiencies that arise from the current joint-ownership structure, Gold Fields said.
It expects that the deal would receive the required regulatory approval in a timely manner.
The deal would consolidate ownership of an attractive cash-producing asset that is expected to support stronger returns to Gold Fields shareholders in the future, the company said.
Gold Fields said that there is no certainty that a transaction will materialise.
Monday's offer gives Gold Road an enterprise value of 2.4 billion Australian dollars.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
March 24, 2025 03:04 ET (07:04 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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