Harmony is urging its shareholders to vote in favour of its proposed merger with Gold Fields at a special meeting scheduled for Friday next week.
Harmony, in an open letter to its shareholders on Monday, said the combined company would provide immediate and long-term shareholder value.
Gold Fields has called the offer unsolicited, hostile and illegal and is fighting it before the Competition Tribunal and the Johannesburg High Court.
In the letter, Harmony stressed its ”impressive track record of delivering cost savings with its 26 previous acquisitions,” including the Evander and St Helena mines, that it had previously acquired from Gold Fields.
It said the merger was in line with Harmony’s strategic plan for growth and would create the largest gold mining producer in the world — ”with all the benefits and economies of scale”.
Harmony chief executive Bernard Swanepoel, who signed the letter, added: ”We strongly believe that together we have an opportunity to create an exciting new future for Harmony and the gold industry.
”As a significant sign of support, Harmony has already received an irrevocable undertaking from MMC Norilsk Nickel, Gold Fields’ largest shareholder, with approximately 20% of the outstanding shares, that it will… accept the… Harmony offer.”
Harmony also pointed out that Institutional Shareholder Services, the world’s leading independent provider of proxy and corporate governance services, recommended that Harmony shareholders vote in favour of the proposed merger with Gold Fields.
”We believe that this transaction is truly in the best interest of all shareholders, and we are very encouraged by the fact that both Gold Fields’ largest shareholder and the world-renowned Institutional Shareholder Services support a Harmony/Gold Fields combination.
”When Harmony and Gold Fields shareholders review the facts of the merger, we think they will agree,” Swanepoel said in a media statement accompanying the open letter.
”This is a tremendous opportunity for us to apply the ‘Harmony way’ to increase the profitability of Gold Fields’ mines, and benefit both Harmony and Gold Fields shareholders.” – Sapa