Gold Fields Ltd. mandated Macquarie Group's equities desk to seek bids for a 10% stake in Gold Road Resources Ltd., equivalent to some 87.1 million shares, with pricing for the bookbuild starting at A$1.45 per share, The Australian Financial Review's Street Talk reported Aug. 22.
The company acquired most of its Gold Road shares in May 2017, when it bought about 74.8 million shares at 86 Australian cents each for a total of A$64.3 million. On Aug. 22, Gold Road shares rose 2.27% to close at A$1.58 apiece on the ASX, and according to Street Talk, Gold Fields is set to make a sizable profit on the disposal.
Gold Road sold a 50% stake in the Gruyere mine in Western Australia to Gold Fields for A$350 million in 2016, with the two miners agreeing to work together on development.
In June, Gold Road flagged a three-month delay for a full ramp-up of the Gruyere gold mine.
In April, Gold Fields sold a 19.9% stake at 12 cents per share in another Australian miner for A$29.6 million, with Sven Lunsche, vice president of corporate affairs, saying at the time that it made a comfortable profit on the shares that it secured in a 2017 deal.
