Barrick Gold Corp. Proposes Buying the Rest of Acacia Mining It Doesn't Already Own
May 21 2019 - 7:32PM
Dow Jones News
By Maria Armental
Canadian miner Barrick Gold Corp. proposed buying the rest of
Acacia Mining PLC it doesn't already own to help resolve a dispute
with the Tanzanian government.
Acacia has been locked in a tax dispute in the East African
nation, which canceled mining licenses for many companies, raised
taxes and royalty payments and accused the Barrick subsidiary of
underreporting gold and copper production.
"While a basis for a settlement has been developed but not
finalized, in meetings this past weekend, the [Tanzanian
government] stated that it is not prepared to enter into a
settlement directly with Acacia," Barrick, which has been
negotiating for Acacia, said Tuesday in a statement.
The London-listed miner, which was split from Barrick in 2010
and called African Barrick until 2014, has also been under
investigation in the U.K. and Tanzania over accusations that some
of its employees bribed Tanzanian government officials and
consultants.
Barrick's proposal -- presented to Acacia on Tuesday -- would
have Barrick acquire Acacia shares through a stock swap of 0.153
Barrick share for each share of Acacia it doesn't already own.
The exchange ratio, Barrick said, is based on the 20-day volume
weighted average trading prices of Acacia and Barrick at market
close in London and New York on May 20.
It implies a value for Acacia of $787 million and total
consideration to Acacia's minority shareholders of $285 million,
Barrick said.
The proposal could be adjusted if Acacia pays any further
dividends, Barrick said.
According to U.K. takeover rules, Barrick must, by no later than
5 p.m. on June 18, either announce a firm intention to make an
offer for Acacia or announce that it doesn't intend to make an
offer.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
May 21, 2019 20:17 ET (00:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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