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Barrick breaks Acacia deadlock with sweetened offer
Posted on Friday, 19 July 2019 09:39
Barrick Gold has brought an end to a standoff with Acacia Mining after sweetening an earlier 193.00 pence per share offer for the UK-listed, Tanzania-focused resources developer to 232.00 pence apiece.
The Canadian powerhouse’s all-scrip proposal, which includes special and deferred cash dividends, values the whole of the African subsidiary at GBP 951.00 million and the remining 36.1 per cent not already held at GBP 343.00 million.
Barrick’s offer is a premium of 53.5 per cent to Acacia’s closing price of 151.00 pence on 20th May, the last unaffected trading day prior to the announcement of a possible buyout.
The bid is also 24.2 per cent than yesterday’s close of 187.00 pence and is up 28.2 per cent on the 20-day volume-weighted average.
London-headquartered Acacia is the holding company of the Acacia group, being Tanzania’s biggest gold miner and one of the largest producers of the precious metal in Africa.
All three of its mines are located in north-west of the country: Bulyanhulu, which is held and managed by Bulyanhulu Gold Mine, Pangea Minerals-owned and operated Buzwagi and North Mara Gold Mine’s North Mara deposit.
The group, which also has exploration projects in Kenya, Burkina Faso and Mali, has been in an ongoing tax dispute with the government of Tanzania (GoT).
In March 2017, the country imposed a concentrate ban forcing Acacia to immediately cease all exports of gold or copper from its Bulyanhulu and Buzwagi mines.
Barrick has been acting as an intermediary to help solve the unpaid row between the two and eventually decided, against this background, that the only way to preserve the value of Acacia’s assets was to fully acquire the subsidiary.
Zephyr, the M&A database published by Bureau van Dijk, shows the purchase of the remaining 36.1 per cent stake is the ninth-largest acquisition targeting the global mining, except oil and gas, sector in 2019 to date.
© Zephus Ltd