But investor concerns that the deal was dilutive and over-valued Yamana sent Gold Fields’ shares tumbling 20% on the day of the announcement.
The spread between the value of Gold Fields’ offer and Yamana’s share price has narrowed following the share slump.
A valuation report produced by CIBC World Markets Inc. on Aug. 30 had valued Yamana’s mineral assets, which include 50% of Canadian Malarctic – one of the world’s biggest gold mines – at between $6.825 billion and $8.025 billion, according to the circulars.
CIBC, one of Canada’s biggest investment banks, said its report did not evaluate Yamana as a corporate entity and excluded the firm’s expenses and interest on debt held at the corporate level.
Gold Fields and Yamana did not provide financial projections but used 2021 financial reports to show that the combined entity would have reported $6 billion revenue and $744 million annual profit if the deal was…
