SOUTH AFRICA – Over 51% of the shares voted were against the proposed reverse takeover of Toronto-based IAMGOLD by GOLD FIELDS of Johannesburg. Only 48% of the shares were voted in favour of the deal.
The transaction was hotly contested. It drew a rival takeover bid for Gold Fields from HARMONY GOLD. That company eventually purchased about 10% of Gold Fields, not enough to control the company.
Gold Fields CEO Ian Cockerill was disappointed in the results. The company’s strategy will continue with the growth of existing assets, acquisitions to increase production by 1.5 million oz per year within five years, and grassroots exploration.
Joseph Conway, IamGold president and CEO, was also disappointed, saying that 72% of his shareholders voted and 98% of them were in favour of the transaction. "We are now free to pursue the opportunities for growth and value creation, both internally and externally, which have been placed on the ‘back burner’ these past several months while the various corporate transactions were pending," he added.
The IamGold website is located at www.iamgold.com.