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ASX-listed Northern Star Resources (ASX:NST) has confirmed reports in Bloomberg that it’s received a 100% takeover offer from a South African company called Gold Fields Limited.
While NST has as of yet rejected that offer – which the company repeatedly noted was an unsolicited proposal – the stock is up over +7% as at 1.40pm AEST following the company’s confirmation it received an offer.
Shares were trading at A$23.72/sh heading into the final two hours of trade bringing the company’s 1Y returns to a mere +4.3%.
While the price of gold has receded in the wake of the still-ongoing US-Iran war, the yellow metal is still up nearly +10% YoY.
Year to date, however, NST is down -11.2% – which perhaps adds context to Gold Fields’ takeover offer, and, the rejection the South African major has received today. All in all, the latter has offered A$39B to NST to buy it out completely in a cash and scrip deal.
The value of the proposed offer values NST at A$27/sh – giving it quite some further room to run should the Australian investing community continue to like what it’s hearing. But NST’s C-Suite might need more convincing.
“Gold Fields has sought to acquire one of the world’s premier gold portfolios at a price that falls well short of what the Board considers to be its fundamental value and at a highly opportunistic time,” NST Chairman Michael Chaney said.
“Furthermore, Gold Fields has asked our shareholders to take nearly three-quarters of the consideration in Gold Fields stock, which carries a meaningfully higher jurisdictional risk profile than the exposure they hold today.”
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