Harmony on the warpath

18 October 2004 By Edward Hadas Follow @edwardhadas

Norilsk is offering its 20% of Gold Fields to upstart Harmony, mainly because it wants a safer haven outside of Russia. But other Gold Fields shareholders might be less enthusiastic. They have to believe that Harmony management offers a big improvement.

This content is for Subscribers only

Context News

Harmony Gold Mining has made an all share offering for Gold Field's Limited. It is offering 1.275 of its own shares for each share of Gold Fields. Norilsk, which owns 20% of Gold Fields has announced its support of the offer. The market capitalisation of Harmony is about half that of Gold Fields.

The initial phase of the offering, for up to 34.9% of the shares, expires November 26. Norilsk will not tender its shares in this early settlement offer.

Gold Fields has agreed to move its international assets into a new company. The new entity would also include the assets of Iamgold, a smaller Canadian mining company. It would be owned 70% by Goldfields and 30% by Iamgold. A vote is scheduled for December 7. Harmony and Norilsk have both announced their intention to vote against the proposed new venture.

Email a friend

Please complete the form below.

Required fields *