Barrick Gold Proposes All-Stock Deal For Acacia Mining
In a press release late Tuesday, Barrick said it recently met with Directors and senior management of Acacia and proposed to acquire all the share it doesn’t already own in a share exchange of 0.153 Barrick shares for each ordinary share of Acacia.
“This implies a value for Acacia of US$787 million and total consideration to the minority shareholders of Acacia of US$285 million,” Barrick said in the press release.
Barrick said that the takeover is related to the company’s ongoing negotiations with the Government of Tanzania to resolve a two-year old tax dispute to that would allow Acacia to resume full production in Tanzania and rebuild its relationships with the GoT.
“While a basis for a settlement has been developed but not finalized, in meetings this past weekend, the GoT stated that it is not prepared to enter into a settlement directly with Acacia,” Barrick said. “As a consequence of the negotiations with the GoT, Barrick has had the opportunity to undertake detailed due diligence on the Acacia assets and on the basis of this work has concluded that the Proposal on the terms set out above reflects the fair value of the company.”
Tanzania has accused Acacia of evading taxes for years by under-declaring exports - an allegation dismissed by the company. Acacia operates three mines in the north-west of Tanzania and has been operating in the mineral-rich East African country for more than a decade.