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Northern Star rejects Gold Fields takeover bid

Northern Star said the conditional offer would be paid about 73% in newly issued Gold Fields shares and valued the proposal at roughly A$27 per share.

Reported · Written up by our desk · Mining

Northern Star Resources rejected an unsolicited takeover proposal from Gold Fields that would create the world’s second-largest gold miner, Mining.com reported.

Northern Star said the A$38.7-billion ($27-billion) offer is conditional and “highly opportunistic,” and it argued the proposal undervalues its portfolio, while the offer would be worth about A$27 per share.

Mining.com reported that about 73% of the consideration would be paid in newly issued Gold Fields shares, and the company said it sees “immense potential” for value creation at Northern Star that any transaction would need to reflect.

The approach adds pressure on the Perth-based miner after activist investor Elliott Investment Management urged Northern Star in June to conduct a strategic review that could lead to a sale, according to Mining.com.

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