By Adriano Marchese
Yamana Gold Inc.'s Toronto-listed shares rose in early trading on Tuesday after Gold Fields Ltd. said it agreed to buy it in an all-stock deal that values the Canadian gold producer at $6.7 billion.
At 9:34 a.m. ET, Yamana's Canadian shares were trading 5% higher at C$7.09.
Under the deal, which has been approved by the boards of both parties, South Africa-based mining company Gold Fields will offer 0.6 share for each Yamana share, which would result in Gold Fields shareholders owning around 61% of the company's stock, while Yamana holders would own the remaining 39%.
The combined company, which will be headquartered in Johannesburg, will have a market capitalization of $15.9 billion with operations in Canada, Australia, Ghana, South Africa as well as across South America.
Meanwhile, Yamana's New York-listed shares were up 8.1% at $5.59.
Write to Adriano Marchese at email@example.com
(END) Dow Jones Newswires
May 31, 2022 09:56 ET (13:56 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.