Gold Fields (JSE:GFI, Not Rated/Not Covered) has reported it submitted a non-binding Indicative offer to the GOR Board whereby GFI would acquire 100% of issued GOR shares for a cash consideration of A$3.05 per share. GFI’s stated motivation for the transaction was to eliminate dis-synergies that have arisen through the current Gruyere JV ownership structure. The GOR Board has rejected the offer and instead offered an alternative transaction for GOR to acquire GFI’s 50% ownership in Gruyere. GFI has rejected GOR’s alternative offer. We have lifted our price target from $2.90 to $3.05, upgrading our HOLD recommendation to a BUY. GFI has stated they will continue to seek the engagement of the GOR Board to consider the merits of the proposed transaction.
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