https://www.miningweekly.com

Acacia says it's worth far more than Barrick offered

9th July 2019

By: Bloomberg

  

Font size: - +

LONDON – Acacia Mining said it’s worth a lot more than the takeover offer proposed by Barrick Gold, showing the African gold miner is digging in its heels in a long dispute with its top shareholder.

The company released a report by a consultant that put its “preferred value” at 271p a share. That’s 38% more than Barrick’s informal proposal to buy the company in an all-stock transaction currently worth 197 pence a share.

Barrick said in a statement that it was reviewing the report against its own due diligence study of Acacia’s assets.

Barrick also said its request to postpone making a firm offer until July 19 had been approved by the UK Takeover Panel. The extension drags out the contested takeover battle even longer and comes after Barrick was already granted a three-week delay. In an interview in June, CEO Mark Bristow said he would use the time to lobby minority shareholders, but had no intention of raising the bid price.

The clock is ticking as Acacia, stuck in a public battle with Tanzania’s government since 2017, has seen its shares collapse by more than 60%. Top officials in the East African country won’t engage with Acacia in any way, Bristow said last month, raising the possibility the situation could get even worse.

Two years ago, Tanzania imposed an export ban on Acacia and handed the miner a $190-billion tax bill, saying it falsely declared bullion sales abroad. Since then, Acacia’s position in the country has deteriorated further, while its relationship with Toronto-based Barrick has become increasingly strained.

Bristow surprised the market in May with an informal plan to buy out Acacia’s minority shareholders for $285-million in stock, a discount of about 8.5% based on closing prices of both companies at the time. Several minority shareholders reportedly balked at the offer.

Edited by Bloomberg

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION