Agnico Eagle Mines and Pan American Silver Corp have put up a joint bid for Yamana Gold, in an attempt to scupper Gold Fields’ planned acquisition of the Canada-listed gold miner.
The cash and stock offer, valuing Yamana at around $4.8 billion, would see Agnico and Pan American split Yamana’s mines between them. Yamana shareholders would receive $1.0406 in cash, 0.0376 of an Agnico share and 0.1598 of a Pan American share for each common share held.
South Africa’s Gold Fields had agreed to take over Yamana in an all-stock deal valuing it at $6.7 billion in May. But a slump in its shares after the deal was announced dented the valuation.
Yamana, whose shares were up 15 per cent after news of the rival bid, said its Board of Directors had determined that the new offer constitutes a superior proposal in accordance with the terms of the arrangement agreement between the company and Gold Fields.
But it also said it would not lead to a termination of the Gold Fields arrangement agreement and the execution of a definitive arrangement agreement with the new offerors, nor that the proposed transaction contemplated by the new bid would be consummated.
Gold Fields maintained its offer was “strategically and financially superior” and said it would continue to work towards completion of the deal.
Yamana and Gold Fields shareholder votes on the deal would still go ahead on November 21 and 22 respectively.
The development comes in the same week Gold Fields reported a stable third quarter.
Chief executive Chris Griffith said the company – with nine operations across South Africa, Ghana, Peru, Chile and Australia – recorded attributable gold equivalent production of 597,000 ounces, down 1 per cent year-on-year and 4 per cent quarter-on-quarter.
Despite the hiccup, Gold Fields is on track to achieve its full-year guidance of producing between 2.25-2.29 million ounces.