Barrick Sale of Super Pit Stake to China Buyer Stalls – by Brett Foley, Scott Deveau and Danielle Bochove (Bloomberg News – February 8, 2017)

https://www.bloomberg.com/

Barrick Gold Corp.’s plan to sell its stake in the Kalgoorlie Super Pit mine to a Chinese bidder has stalled, as the buyer faces delays securing financing for the $1.3 billion deal, people with knowledge of the matter said.

Minjar Gold Pty, a unit of property developer Shandong Tyan Home Co., is also still seeking Chinese regulatory clearance for the purchase, according to the people. Barrick is awaiting an outcome and remains interested in selling to Minjar, which outbid other suitors by a large margin, the people said, asking not to be identified because the information is private.

Barrick may still decide to re-enter talks with other buyers or keep its 50 percent stake in the Western Australia asset, which is the country’s largest open-pit gold mine, the people said.

Shares in Barrick rose 1.4 percent in trading Wednesday to $19.59 a piece as of 9:48 a.m. in New York. While Chinese companies’ willingness to offer top-dollar prices helped fuel a $248 billion overseas acquisition spree last year, they’ve struggled at times to close transactions.

In December, Chinese agencies including the National Development and Reform Commission said they’re closely watching “irrational” outbound purchases amid a broader effort by the government to limit capital outflows.

For the rest of this article, click here: https://www.bloomberg.com/news/articles/2017-02-08/barrick-s-sale-of-super-pit-stake-to-chinese-buyer-said-to-stall

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