(Alliance News) - Yamana Gold Inc confirmed on Wednesday that it will pay a USD300 million in termination fee to Gold Fields Ltd and cancelled its scheduled shareholder meeting called to approve the takeover offer from the South African gold miner.
This comes after Gold Fields on Tuesday withdrew its offer for Toronto-based Yamana in response to Yaman's support of a joint bid from Pan American Silver Corp and Agnico Eagle Ltd.
Yamana said in a statement on Wednesday its arrangement agreement with Agnico Eagle and Pan American, entered into on Friday last week, had become effective after Gold Fields' withdrawal.
It also said the previously scheduled special meeting of Yamana shareholders set for November 21 will be cancelled, and Yamana will pay a termination fee of USD300 million to Gold Fields.
Pan American will pay half of this termination fee, Yamana noted.
On Tuesday, Yamana endorsed a joint offer from Pan American and Agnico Eagle, with its board recommending that shareholders vote against the Gold Fields bid that it previously had supported.
Yamana and Gold Fields had entered into a definitive agreement for an all-share takeover deal on May 31.
Under the new joint bid tabled on Friday last week, the consortium offered USD1.0 billion in cash, plus about 153.5 million shares in Pan American, which is listed on Nasdaq, and some 36.1 million shares in Agnico Eagle, which is on the New York Stock Exchange.
At the time, this offer amounted to around USD4.8 billion, compared to Gold Fields' USD4.3 billion.
In Johannesburg, Gold Fields shares surged 14% to ZAR173.17 on Wednesday morning. Yamana eased 0.4% to 433.22 pence in London. In the New York on Tuesday, Yamana closed up 3.2% at USD5.04.
By Artwell Dlamini; artwelldlamini@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.