19th Jul 2019 07:44
(Alliance News) - Acacia Mining PLC has agreed a full takeover by parent Barrick Gold Corp, it announced Friday, at a valuation well above what Barrick had previously suggested.
Barrick is offering 0.168 of its own shares per Acacia share, which implies a value of 232 pence per Acacia share. This is a 54% premium to Acacia's closing price of 151p on May 20, the day before Barrick announced a possible offer.
The price is also a 24% premium to Acacia's closing price on Thursday in London of 187p.
The agreed deal values the entirety of Acacia at GBP951 million, and given Barrick already has a 64% stake, Barrick will be paying GBP343 million for the stock it does not already own.
The new 232p offer is well above what Barrick had previously proposed, a 0.153 Barrick share offer valuing Acacia at 146p per share.
The offer also comes on the deadline day for an offer to be made, July 19, which had been extended to allow talks to continue between the two parties.
Last week, a review of Acacia's assets by SRK Consulting UK Ltd had valued Acacia at between 271p to 281p per share, Acacia said.
Barrick has been leading talks with the Tanzanian government to resolve Acacia's problems in the country, which date back two years. The government has said it will not engage with Acacia itself, meaning Barrick felt a takeover was the best option.
Related Shares:
ACA.L