Corrected: UPDATE 1-Australia's Northern Star rejects $27 billion takeover bid from South Africa's Gold Fields
CORRECTED-UPDATE 1-Australia's Northern Star rejects $27 billion takeover bid from South Africa's Gold Fields Corrects 22% premium in paragraph 2 to Northern Star's last close before the proposal was received on September 14
Sept 28 (Reuters) - Australia's Northern Star Resources NST.AX said on Monday it rejected an unsolicited takeover proposal from South Africa's Gold Fields GFIJ.J that valued the gold miner at A$38.7 billion ($27.12 billion).
Gold Fields' offer implied a value of A$27.00 per Northern Star share, representing a 22% premium to the stock's last close before the proposal was received on September 14.
Under the deal, Northern Star shareholders would have received 0.3125 new Gold Fields shares and A$7.25 in cash for each Northern Star share.
The Perth-based gold miner said the proposal would have left shareholders with significant exposure to Gold Fields stock, which it said carried a higher jurisdictional risk profile than Northern Star's existing asset base.
Gold Fields did not immediately respond to a request for comment.
Northern Star appointed a new chief executive in July as the miner faced pressure from activist investor Elliott Investment Management for a strategic review.
($1 = 1.4267 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Mark Porter and Jamie Freed)