Northern Star rejects $38.7 billion takeover bid from Gold Fields
Australia's biggest gold miner Northern Star rejected a $38.7 billion takeover offer from South Africa's Gold Fields as too low and opportunistic.
Northern Star Resources, which owns Kalgoorlie's super pit, rejected a takeover offer from Gold Fields. The bid represented a 22 per cent premium to Northern Star's share price on 11 September but was valued at $38.7 billion.
The board said the offer was opportunistic and fell short of the company's true value. Gold Fields asked Northern Star shareholders to take nearly three-quarters of the payment in Gold Fields stock.
The board said this carried higher risk. The proposal was also conditional, which the board cited as another reason to reject it unanimously.
Northern Star appointed a new chief executive in July after pressure from investor Elliott Investment Management, which had called for a sale or asset divestments. The company has cut production guidance multiple times this year due to processing plant issues.
- $38.7 billion
- Bid value
- 22 per cent
- Premium to share price
- Nearly three-quarters
- Stock portion
- Kalgoorlie super pit
- Location
Why it mattersMajor corporate deals reshape Australia's mining sector and can affect investment, jobs, and control of key national assets.
AustraliaNorthern Star is Australia's largest gold miner; its independence matters to local employment, investment returns for Australian shareholders, and control of one of the world's largest gold operations.
Corroborated bytheage.com.au·watoday.com.au
✓ Claims checked against the source. checked 51 min ago
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