Barrick Gold Corp. has been given more time to table a formal takeover bid for Acacia Mining PLC, as its London-based subsidiary pushes for a materially higher offer.
On Tuesday, just hours before a deadline set by a British takeover panel was set to expire, Barrick was granted a 10-day extension to consider a report by an independent mining consultant that argues Acacia is worth about 38 per cent more than Barrick is willing to pay.
In a release, Acacia said that SRK Consulting (UK) Ltd. has calculated the “preferred” value for Acacia to be 271 pence ($4.45) a share. In May, Toronto-based Barrick said it was willing to pay 0.153 of its own shares for each Acacia share it doesn’t already own, or roughly 197 pence a share.
Barrick’s push for Acacia, which operates three gold mines in the east African country of Tanzania, is strongly motivated by a desire to end a geopolitical quagmire that has engulfed its subsidiary for more than two years.
In 2017, the government of Tanzania banned Acacia from exporting gold concentrate, and accused it of US$200-billion in tax fraud.
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