Gold Road Resources’ board has approved a $3.7 billion takeover proposal from Gold Fields, a major South African gold mining firm. The agreement involves Gold Fields acquiring 100% of Gold Road’s issued share capital, formalizing the deal through a scheme implementation deed. This merger consolidates the 50:50 joint venture between the two companies at the Gruyere gold mine in Western Australia.
Under the terms, Gold Road shareholders will receive $2.52 in fixed cash, plus variable cash equal to their holding in Northern Star, valued at $0.88 per share. The Gold Road board recommends shareholders approve the scheme, pending a superior proposal and a favorable independent expert report. Shareholders holding 7.5% of Gold Road’s shares have committed to voting in favor. Gold Road intends to declare a fully franked special dividend, estimated at $0.35 per share, upon the scheme’s effectiveness. The offer represents a ‘best and final’ price from Gold Fields, with no increase anticipated without a competing proposal.
