(Bloomberg) -- Gold Fields Ltd. offered to buy Canada’s Yamana Gold Inc. for about $7 billion in shares as the South African miner expands in the Americas.
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The Johannesburg-based miner will offer 0.6 of one of its shares for each Yamana share, the company said in a statement. Based on the ten-day volume weighted average traded price of Gold Fields’ American depositary shares the deal would imply a value of $6.7 billion and represent a 34% premium to Yamana’s closing share price on May 27, the company said.
Gold Fields said that Yamana fits its strategy of expanding “in mining friendly rules-based jurisdictions across the Americas.”
“The result is a combination with much greater capacity and potential value than the sum of its parts,” Chief Executive Officer Chris Griffith said in the statement.
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