[SMM Gold Flash] Northern Star Resources disclosed on 28 September that its board had unanimously rejected an unsolicited, conditional proposal from South Africa’s Gold Fields to acquire the Australian gold miner. The indicative offer, received on 14 September, comprised 0.3125 new Gold Fields shares and A$7.25 in cash per Northern Star share. It implied A$27 a share, or A$38.7 billion in equity value, at 11 September prices. Northern Star told Gold Fields on 25 September that it would not engage further on that proposal.
The board said the offer undervalued its mines and exposed shareholders to additional operational and jurisdictional risk through its large share component. By 25 September, the implied value had fallen to A$25.19 a share as Gold Fields’ stock price moved. The disclosure puts consolidation of large gold portfolios back in focus, but the approach was non-binding and no transaction has been agreed.
