Gold Fields’ $3.8b takeover of Gold Road achieves shareholder approval
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The news: Gold Road Resources shareholders voted overwhelmingly in favour of its acquisition by Gruyere Holdings, a subsidiary of Johannesburg-based Gold Fields.
The numbers: An ASX filing published on Monday evening said that over 99% of votes cast were in favour of the $3.8 billion cash and scrip deal.
As at 8 August, the scheme valued Gold Road at approximately $3.6 billion, or $3.29 per Gold Road share, however at Friday’s close based on the five day weighted average, the cash offer under the scheme values the gold miner at $3.8 billion, or roughly $3.45 per Gold Road share.
The context: Gold Road agreed to the takeover bid from its South African counterpart, in May, after rejecting an initial $3.3 billion proposal from Gold Fields in March. Gold Road had labelled the initial proposal as “highly opportunistic” and saying it attributed no value to the potential underground expansion of the Gruyere mine in Western Australia. The Australian miner and the Johannesburg-based Gold Fields hold an equal stake in the mine.
In September, Gold Road Resources announced a fully franked special dividend of 43.69 cents per share as part of the deal to be acquired by Gruyere. Under the scheme the special dividend received by shareholders will lower the fixed cash consideration component they will receive at the completion of the deal.
Gold Road will be removed from the ASX prior to the open of trading on Monday 29 September 2025.
The deal remains subject to regulatory approval.
