Zijin’s Guyana Goldfields takeover backed by proxy firms
Guyana Goldfields (TSX: GUY) announced on Wednesday that independent advisory firms Institutional Shareholder Services (ISS) and Glass Lewis & Co. have provided reports backing the company’s proposed takeover by China’s Zijin Mining Group, which outbid the previous interested buyer Silvercorp Metals (TSX, NYSE: SVM) with an offer that would value Guyana Goldfields at C$323 million ($238m).
The reports issued by ISS and Glass Lewis also include positive recommendations on the election of director nominees, Guyana Goldfields’ approach to executive compensation and the reduction of stated capital.
While endorsing the transaction, ISS noted that “shareholders will cash out of their investment at a significant premium … with certainty of value and immediate liquidity.”
Glass Lewis also provided a positive recommendation, stating that “the proposed transaction appears to be the result of a robust and competitive process” and sees “no reason to doubt that it likely represents the most favourable offer available at the present time.”
The proxy firms recommend Guyana Goldfields shareholders to vote for the transaction before next Thursday’s deadline.
Shares of Guyana Goldfields rose 1.1% on the TSX as of 1:30 p.m. EDT Wednesday. The company’s market capitalization stands at approximately C$312.5 million.