Barrick Gold announces long awaited buyout deal with Acacia Mining
Barrick Gold has reached agreement with Acacia to purchase the remaining 36% stake of the Tanzania-based gold producer it doesn’t already own. Followin...
Barrick Gold has reached agreement with Acacia to purchase the remaining 36% stake of the Tanzania-based gold producer it doesn’t already own. Followin...
Barrick Gold has reached agreement with Acacia to purchase the remaining 36% stake of the Tanzania-based gold producer it doesn’t already own.
Following a long stand-off Barrick has sweetened the deal for Acacia shareholders with a new offer with implied value of around 232 pence per Acacia share (valuing the company at £343mn), a 24% premium to the closing price on Thursday.
Bloomberg reports that Acacia’s acting Chief Executive Officer Peter Geleta believes the agreement paves the way for Barrick to negotiate with Tanzania in hopes of resolving a public battle that crippled Acacia’s operations in the country, where it runs three gold mines. Acacia hopes the talks will help set up a “new partnership” with the Tanzanian government, Geleta said. “Given all the circumstances, this is possibly the best outcome,” he added.
A statement from Acacia further reinforce this notion: “It is also an attractive solution for the company’s other key stakeholders, as it may enable Barrick to finalise the terms of a settlement with the government of Tanzania, thereby resolving the long-running disputes and potentially allowing the Acacia group’s Tanzanian business, and its employees in Tanzania, who have provided exceptional and unstinting support in continuing operations in country, to return to a normalised operating environment.”
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TIMELINE FOR THE BARRICK OFFER