Northern Star Rejects $27 Billion Takeover Proposal From Gold Fields
By Rhiannon Hoyle
Northern Star Resources rejected a takeover proposal from Gold Fields that valued its equity around US$27.2 billion, saying it was highly opportunistic and materially undervalued the company.
Australia's Northern Star said that under the proposal, received on Sept. 14, South Africa-based Gold Fields would have acquired each of its shares for 0.3125 new Gold Fields shares and 7.25 Australian dollars, equivalent to US$5.09, in cash.
The proposal represented an implied price of A$27.00 per Northern Star share based on Gold Fields's closing price on Sept. 11, valuing Northern Star's equity at A$38.7 billion. It represented a 22% premium to Northern Star's closing share price that day.
"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," said Chairman Michael Chaney.
Northern Star has been under pressure to make sweeping changes from activist investor Elliott Investment Management. Elliott in June announced a large stake in the company after a string of guidance downgrades that meant it hadn't been able to fully capitalize on strength in the gold price.
The company said it told Gold Fields on Friday that the board does not consider it appropriate to engage further on the proposal.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
September 27, 2026 19:15 ET (23:15 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy Before They Rise Further
2 Undervalued Stocks to Buy Before They Rebound
The 10 Best Companies to Invest in Now
The 10 Best Dividend Stocks
United States