Barrick Reaches Deal To Buy Remaining Acacia Shares
(Kitco News) - Barrick Gold Corp. (NYSE: GOLD; TSX: ABX) said Friday that it has reached an agreement to buy the shares in Acacia Mining Plc. that it does not already own in a deal that values Acacia at 951 million pounds.
Barrick already owned 64% of Acacia. The deal ends a protracted standoff over the value of the latter.
Under the agreement between the boards of directors of both companies, Acacia shareholders will receive an increased offer of 0.168 Barrick shares per Acacia share. Additionally, there will be special dividends on Acacia exploration properties and deferred cash consideration dividends.
Based on the closing price of Barrick shares on the New York Stock Exchange Thursday, the deal imply a value of 232 pence per Acacia share. This means total consideration of approximately 343 million pounds ($428 million) for Acacia minority shareholders and a total value of approximately 951 million pounds for Acacia, Barrick said. This also means a premium of 24.2% to the closing price of Acacia shares on Thursday, and a premium of 28.2% to the volume-weighted average price per Acacia share over the 20 trading days through Thursday.
Acacia has been in a protracted tax battle with the government of Tanzania. The government announced a ban on the export of metallic mineral concentrates in 2017, and as a result, Acacia placed the Bulyanhulu mine on reduced operations. Barrick has already been in negotiations with the government in an effort to resolve the issues and get the export ban lifted.