Acacia Mining Shares Drop on Prospect of Barrick Takeover to Solve Tax Dispute
May 22 2019 - 3:42AM
Dow Jones News
By Adam Clark
Acacia Mining PLC (ACA.LN) shares fell on Wednesday after its
board said it would consider a takeover proposal from former parent
Barrick Gold Corp. (GOLD), as a possible way to resolve its dispute
with the Tanzanian government.
Barrick, which still has a 64% stake in Acacia, said late
Tuesday that it had proposed acquiring the London-listed miner via
a stock swap of 0.153 Barrick share for each share of Acacia it
doesn't already own.
The deal implies a value for Acacia of $787 million and total
consideration to Acacia's minority shareholders of $285 million,
Barrick said.
Acacia shares at 0753 GMT traded down 4.6% at 152.10 pence,
valuing the company at 623.7 million pounds ($793.1 million).
Acacia has been locked in a tax dispute in Tanzania, which
canceled mining licenses for many companies, raised taxes and
royalty payments and accused the company of underreporting gold and
copper production. Barrick said Tuesday that the basis for a
settlement has been developed but the Tanzanian government has
refused to enter into a deal directly with Acacia.
The board of Acacia said it would seek clarification of the
Tanzanian government's position and advised shareholders to take no
action in the meantime.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
May 22, 2019 04:27 ET (08:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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