{"id":823013,"date":"2025-05-05T08:00:00","date_gmt":"2025-05-05T06:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=823013"},"modified":"2025-05-05T08:59:09","modified_gmt":"2025-05-05T06:59:09","slug":"south-african-giant-buying-australian-company-for-r45-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/823013\/south-african-giant-buying-australian-company-for-r45-billion\/","title":{"rendered":"South African giant buying Australian company for R45 billion"},"content":{"rendered":"\n

South African gold miner Gold Fields, via its subsidiary Gruyere Holdings, is acquiring Australia’s Gold Road Resources for AUD$3.7 billion (roughly R45 billion).<\/p>\n\n\n\n

Gold Fields has entered into a binding Scheme Implementation Deed to acquire 100% of the issued and outstanding share capital of Gold Road.<\/p>\n\n\n\n

Gold Road’s Board has unanimously recommended that its shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to an independent expert’s report.<\/p>\n\n\n\n

Gold Road holds a 50% interest in the Gruyere gold mine in Western Australia and a portfolio of 100%-owned exploration projects across the broader Yamarna Greenstone Belt.<\/p>\n\n\n\n

Gold Fields currently holds the other 50% interest in the Gruyere gold mine, and said that the consolidation forms part of its strategy of improving portfolio quality via high-quality, long-life assets.<\/p>\n\n\n\n

“We are grateful for our partnership with Gold Road, which has seen the asset evolve from exploration discovery to a high-quality operational mine,” said Gold Fields CEO Mike Fraser.<\/p>\n\n\n\n

“We look forward to maximising the potential of the Gruyere gold mine and Gold Road\u2019s exploration package to the benefit of Gold Fields shareholders.”<\/p>\n\n\n\n

The transaction comes after Gold Fields produced robust results, buoyed by the record-high gold price. Its net income in 2024 grew by 248.68% to USD428 million (R7.8 billion).\u00a0<\/p>\n\n\n\n

Structure of the deal<\/strong><\/h2>\n\n\n
\n
\"\"<\/a><\/figure><\/div>\n\n\n

Under the terms of the scheme, Gold Road shareholders would be entitled to receive a cash consideration equivalent to the value of A$3.40 (R62) per Gold Road share, comprising the following:<\/p>\n\n\n\n

    \n
  • A fixed cash portion of A$2.52 for each Gold Road share, and<\/li>\n\n\n\n
  • A variable cash portion equal to the full value of each shareholder\u2019s proportion of Gold Road\u2019s shareholding in Northern Star Resources based on the prevailing 5-day volume-weighted average price immediately before the Scheme becomes effective.\n
      \n
    • As of 2 May 2025, the Variable Cash Consideration is A$0.88 per Gold Road share.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      The value of the variable cash consideration will fluctuate based on movements in the value of Northern Star shares until the scheme becomes effective.<\/p>\n\n\n\n

      Should the scheme become effective, Gold Road intends to declare a fully franked special dividend. <\/p>\n\n\n\n

      The quantum of the special dividend will be based on Gold Road’s prevailing franking account balance at the time of distribution, it said.<\/p>\n\n\n\n

      This implies a special dividend of roughly A$0.35 per Gold Road share for a total special dividend payment to all Gold Road shareholders of approximately A$379 million.<\/p>\n\n\n\n

      The special dividend paid will be fully funded by Gold Road\u2019s existing cash balance and other sources of liquidity and will be deducted from the fixed cash consideration.<\/p>\n\n\n\n

      The ultimate amount payable as a special dividend will be subject to Gold Road’s financial performance until the scheme becomes effective.<\/p>\n\n\n\n

      However, the payment and amount of any special dividend are still at the discretion of the Gold Road Board.<\/p>\n\n\n\n

      The Scheme Consideration values Gold Road’s equity at roughly A$3.7 billion, implying a total enterprise value of roughly A$2.6 billion. The offer presents premiums of:<\/p>\n\n\n\n

        \n
      • 43% to Gold Road\u2019s undisturbed closing share price of A$2.38 per share on 21 March 2025;<\/li>\n\n\n\n
      • 35% to Gold Road\u2019s undisturbed 30-day VWAP of A$2.52 per share on 21 March 2025; and<\/li>\n\n\n\n
      • 39% to Gold Road\u2019s undisturbed 3-month VWAP of A$2.45 per share on 21 March 2025.`<\/li>\n<\/ul>\n\n\n\n

        Gold Fields said that the scheme’s price is ‘best and final’ and will not be increased further unless a superior proposal emerges. <\/p>\n","protected":false},"excerpt":{"rendered":"

        Gold Fields plans to acquire Australia-based Gold Road Resources, with the two companies already co-owning the Gruyere gold mine. <\/p>\n","protected":false},"author":95,"featured_media":823019,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[6698,22447],"class_list":["post-823013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-gold-fields","tag-gold-road"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=823013"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823013\/revisions"}],"predecessor-version":[{"id":823027,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/823013\/revisions\/823027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/823019"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=823013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=823013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=823013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}