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Gold Fields plans Toronto listing after Yamana deal

July 11 (Reuters) – South Africa’s Gold Fields (GFIJ.J) on Monday announced plans to seek a listing on the Toronto Stock Exchange (TSX) if its proposed takeover of Canada’s Yamana Gold is successful, in a bid to win over investors, some of whom had criticised the deal.

“Gold Fields will apply to have its securities listed on the TSX, subject to the completion of the transaction, to provide shareholders additional flexibility at limited incremental cost,” Gold Fields said in a statement.

Gold Fields, which has a primary listing on the Johannesburg Stock Exchange, also said it would revise its dividend policy to declare an interim and final dividend of up to 45% of normalised earnings each year.

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The company announced plans to acquire Yamana in an all-share transaction which valued the Canada-listed miner at $6.7 billion on May 31, but market reaction was largely negative, with Gold Fields’ shares plunging 20% on the day it was announced. The deal would create the fourth largest gold producer by output. read more

Last month, Redwheel, a top-10 investor in Gold Fields, publicly told the miner to cancel the planned takeover, which it described as an expensive “serious error” with no guarantee of growth and profitability. read more

Gold Fields chief executive Chris Griffith said he was encouraged by ongoing “constructive discussions” with shareholders.

“We believe the Yamana acquisition delivers on our strategy to grow the value and quality of our portfolio, by creating a winning combination of excellent assets with complementary operational strengths and proactively addressing industry wide production and reserve replacement challenges,” said Griffith.

Griffith has said the Yamana deal helps Gold Fields – which has operations in South Africa, Australia, Ghana and Peru as well as a project in Chile – to get a long coveted foothold in Canada, while offering synergies in South America.

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Reporting by Nelson Banya, Editing by Louise Heavens, Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

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