Yamana Gold Inc. has signed a deal to be acquired by Pan American Silver Corp. and Agnico Eagle Mines Ltd. after Gold Fields Ltd. waived its right to match the rival bid for the gold miner.
The company ruled last week that the offer by Pan American and Agnico Eagle was a "superior proposal" to the agreement it signed earlier this year to be bought by Gold Fields.
Gold Fields terminated its offer after Yamana's board recommended Tuesday that shareholders vote against its proposal for the company.
The South African miner says it was disappointed by the outcome, but following Yamana's change in recommendation the most disciplined and prudent course of action was to walk away from its deal.
Gold Fields says the Canadian gold miner must now pay a break fee of US$300 million under the agreement signed earlier this year.
Under the US$4.8-billion Pan American-Agnico Eagle proposal, Yamana shareholders will receive US$1.04 in cash, 0.1598 of a Pan American share and 0.0376 of an Agnico Eagle share for each Yamana share they hold.
Advertisement