Acacia’s takeover bid deadline extended again

ACACIA Mining Board has agreed to Barrick Gold Corporation’s request for an extension of shares’ takeover deal.

This follows Barrick’s request that it needed more time to firm up its indicative offer for Acacia.

Consequently, the Canadian gold miner now has until July 19 to make a proposal to investors holding Acacia shares.

The extension comes as an independent consultant—SRK Consulting (UK) Limited—released a report, saying Acacia is worth considerably more than Barrick’s indicative bid.

Barrick, which controls majority 63.9 per cent shares in Acacia, made the indicative bid to take the London-listed gold miner in May, saying it was the best way to solve an ongoing dispute with the Tanzanian government.

Barrick valued Acacia at 787 million US dollars but minority shareholders rejected the proposal, accusing the mining giant of taking advantage of its problems to buy the company at a knockdown price.

According to Competent Persons Report & PUSU Extension that Acacia Mining issued yesterday, the board requested the panel on the takeovers and mergers to extend the PUSU deadline.

“In light of this request, an extension has been granted by the panel and in accordance with Rule 2.6(a) of the Code, Barrick is required, by not later than 5.00pm on 19 July 2019, to either announce a firm intention to make an offer or reject it,” reads the statement.

However, the statement further stated that the new deadline may be extended with the consent of the panel in accordance with Rule 2.6(c) of the Code.

The earlier June 18, 2019 deadline was extended, with Acacia announcing that it was extended to July 9, this year. Now, again, the company has announced another deadline extension.

On May 21 this year, Acacia Mining announced that it received an indicative proposal from Barrick on a possible offer for the entire issued and to be issued share capital of the company not already owned or controlled by Barrick.

“Acacia Board believes that subject to the price offered being fair and commanding the necessary support from shareholders, Barrick acquiring the remaining shares in Acacia it does not currently own would be an attractive solution for key stakeholders,” the gold miner said in the statement

. The government of Tanzania has already put it clear to the Barrick that if its gold mining subsidiaries are to continue operating in Tanzania, they must be under new operating company in which the government has a stake.

“The ball is now on Barrick’s court... solve Acacia or no deal,” the government Chief spokesperson Dr Hassan Abbasi was quoted as saying.

Following the government’s firm stand, Barrick offered to buy the remaining 35 per cent of Acacia through an all-stock offer pitched at a discount to the prevailing share price.

Barrick stated earlier it had made an indicative offer because it was clear that the Tanzanian government was not prepared to deal directly with Acacia to settle the long-running row over outstanding tax claims.

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Author: DAILY NEWS Reporter

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