(Reuters) – Acacia Mining on Monday strongly disagreed with majority shareholder Barrick Gold Corp’s valuation of the company, saying Barrick’s proposal undervalued its life of mine plans and appears to have ignored the value of its exploration and development assets.
However a fair value buyout offer from the world’s No. 2 gold miner would be attractive, it added.
Barrick’s proposal to take full control of its African unit to resolve a long-standing tax dispute with Tanzania has drawn the ire of Acacia’s minority shareholders, who may have the ultimate vote on a deal.
Toronto-based Barrick’s May 21 share-for-share proposal valued Acacia at $979 million as of Friday’s close, versus $787 million when it first proposed the deal, thanks to a 27% jump in Barrick shares. Barrick said last week its proposed offer is “more than fair” and will engage with Acacia’s board and minority shareholders to win them over.
Barrick shares rose 0.8% to C$20.73 in early trade in Toronto. Acacia shares were little changed at 182.2 pence in London, bringing gains since before Barrick’s offer to 14.4%.