Northern Star Resources has rejected a $27.2 billion takeover proposal from Gold Fields, calling it highly opportunistic and materially undervalued. The Australian miner stated its board does not consider it appropriate to engage further on the bid, which was submitted on Sept. 14. The offer included 0.3125 Gold Fields shares and A$7.25 cash per Northern Star share, implying a price of A$27.00 per share and representing a 22% premium.

Chairman Michael Chaney emphasized the company’s high-quality portfolio and long-life gold assets in tier-1 jurisdictions. The rejection comes amid pressure from activist investor Elliott Investment Management, which disclosed a sizable stake in June following operational setbacks. Northern Star recently appointed Mark Cutifani, Peter Rozenauers, and Suresh Vadnagra to leadership roles, with Vadnagra set to become CEO on Oct. 5.

The company cited onerous conditions and jurisdictional risks in the Gold Fields proposal, noting shareholders would have held roughly 33% of the combined entity. Northern Star shares rose 8.5% in early Sydney trading.