(Alliance News) - Gold Fields Ltd on Tuesday said shareholders will vote on its proposed acquisition of Toronto-based Yamana Gold Inc.
The Johannesburg-based gold miner wants to buy Toronto-based company in an all-share offer valued at around USD6.7 billion.
In a statement on Tuesday, Gold Fields said Yamana shareholders will convened at the company's special general meeting on November 21.
Gold Fields will hold its own special general meeting the following day, allowing its shareholders to have a say in the proposed acquisition.
The acquisition is also subject to regulatory approvals.
In terms of the proposed acquisition, Yamana shareholders will receive 0.6 of a new Gold Fields share for each Yamana share held, implying a valuation of USD6.7 billion.
Yamana shareholders will receive either newly issued shares in Gold Fields, which are listed on the Johannesburg Stock Exchange, or newly issued Gold Fields' American depositary shares, which trade on the NYSE.
Yamana is a Canada-based precious metals producer with significant gold and silver production throughout the Americas, including Canada, Brazil, Chile and Argentina. Its total attributable production for twelve months ended March 31 was 1.01 million ounces.
If the acquisition succeeds, the Yamana shares will be delisted from the Toronto Stock Exchange, the NYSE and the London Stock Exchange.
Gold Fields and Yamana shareholders will own about 61% and 39% of the combined group, respectively.
The combined entity will be headquartered in Johannesburg with operations across Canada, Australia, South America, Ghana and South Africa.
Gold Fields shares rose by 3.8% to ZAR154.83 each in Johannesburg on Tuesday. Yamana was up 7.7% at 420.00 pence in London.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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