Barrick set to take full control of Acacia after raising bid – by Nichola Saminather, Barbara Lewis and Zandi Shabalala (Reuters Canada – July 19, 2019)

https://ca.reuters.com/

TORONTO/LONDON (Reuters) – Barrick Gold Corp has struck a deal to buy out its fellow shareholders in Acacia Mining with a higher bid than originally proposed, raising expectations Acacia’s long-running tax dispute with the Tanzanian government will finally be resolved.

The original buyout proposal from Barrick, which owns 63.9% of Acacia, drew accusations from minority shareholders that Barrick was taking advantage of the Tanzania-focused company’s woes to buy it on the cheap. But Acacia acknowledged that a takeover would be the best solution to its problems.

The improved bid was welcomed by the company and investors, with Acacia shares jumping as much as 20% on Friday. They were trading at 222 pence, their highest since April, at 1453 GMT (10:53 a.m. EDT).

“We will… get these businesses back on track,” Barrick Chief Executive Mark Bristow said in a phone interview, indicating the company could also sell some of Acacia’s three mines in Zambia, along with most of its exploration properties.

“Depending on what they look like after they are in a reasonable form, we will again look to see if there is a better home for some of the assets that might not fit the Barrick investment filter,” he said.

For the rest of this article: https://ca.reuters.com/article/businessNews/idCAKCN1UE0ID-OCABS

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