Gold Fields goes hostile in $27bn Northern Star takeover

GOLD Fields confirmed today it had a proposal of a A$38.7bn ($27bn) shares and cash takeover of Northern Star Resources rejected by the Australian company but that it intends to press on with its efforts to complete the transaction.

“While we are disappointed that the Northern Star Board has not yet chosen to engage on a proposal … we remain open to constructive dialogue and continue to seek engagement with the Northern Star Board to discuss the merits of the proposed transaction,” said Mike Fraser, CEO of Gold Fields in an announcement.

Northern Star is a 1.5 million ounce a year Australian-listed gold miner which has had a difficult year restating production and changing management. Ryan Gurner is the firm’s interim CEO following the departure of Stuart Tonkin on August 28. Suresh Vadnagra will officially step into the permanent role at Northern Star on October 5.

Gold Fields said it proposed a 22% premium to Northern Star’s closing share price on September 11 which is equal to A$27 per share or a total value of A$38.7bn.

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