This archive report was first published on 19 July 2019.
On July 19, 2019, Barrick Gold Corp announced a deal to buy out fellow shareholders in Acacia Mining, valuing the firm at 951 million pounds ($1.1 billion). This move ends a two-month standoff between the world's second-biggest gold miner and its Africa unit.
Barrick had spun off Acacia into a separate company in 2010, but owns about 64% of the company. The deal will offer Acacia shareholders, as well as special dividends on Acacia exploration properties and deferred cash consideration dividends, 0.168 Barrick shares per Acacia share, implying a value of about 232 pence per share.
Acacia had previously stated that it was worth more than Barrick's earlier offer of 193 pence per share, which valued the company at a lower amount. Barrick's final offer represents a 24.3% premium to Acacia's closing price on Thursday.
The buyout proposal follows two years of wrangling over a $190 billion tax bill in Tanzania, which was reduced to $300 million under a 2017 framework agreement.
