Gold Fields' A$3.3bn Gold Road acquisition proposal rejected

Gold Fields Limited (JSE:GFI) has announced that its non-binding, indicative proposal to acquire 100% of Gold Road Resources for A$3.05 per share, valuing Gold Road's equity at A$3.3 billion, has been rejected by the Gold Road Board of Directors. The offer included a fixed cash consideration and a variable portion based on Gold Road's shareholding in De Grey Mining. Gold Fields expressed disappointment that the Gold Road Board did not constructively engage on the proposal, which would have consolidated their ownership of the Gruyere mine in Western Australia. Gold Fields will not pursue an alternative transaction suggested by Gold Road regarding the Gruyere mine. Gold Fields remains committed to its acquisition strategy and maintains a strong balance sheet to finance potential acquisitions, but there's no certainty of a successful transaction, and cautions shareholders to exercise caution when trading Gold Fields' securities.