Gold Road takeover gets FIRB approval
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The news: South African miner Gold Fields’ $3.7 billion takeover bid for ASX-listed partner Gold Road Resources has received approval from the Foreign Investment Review Board (FIRB).
The numbers: Under the revised deal announced earlier in May, Gold Road shareholders will receive a total cash consideration of $3.40 a share, including a fixed cash consideration of $2.52 a share plus a variable cash consideration for the company’s holding in Northern Star Resources, valued at 88 cents a share.
Gold Road shares are up 1.4% to $3.31 in early trading.
The context: Gold Road said Gold Fields has been notified that the federal government had no objection to the proposed deal. The treasurer’s approval satisfies a key condition set by the Foreign Investment Review Board for the takeover. The deal is still subject to assessment by an independent expert and the approval of Gold Road shareholders.
Earlier, Gold Road’s board unanimously recommended in favour of the Gold Fields offer, citing certainty of value at a compelling premium.
The Australian miner and the Johannesburg-based Gold Fields hold an equal stake in the Gruyere gold mine in Western Australia. Gold Road also holds a stake in Northern Star Resources through the conversion of its previous holding in De Grey Mining, which was acquired by NSR.
The source: ASX
