LONDON (Alliance News) - Acacia Mining PLC has received an all-share takeover offer from Canadian parent Barrick Gold Corp for the rest of the company's shares, both companies announced Wednesday.
Barrick is offering 0.153 of a new Barrick share per Acacia share. Barrick already owns 64% of Acacia, whose shares closed flat Tuesday at 159.50 pence each.
In its own statement, Barrick said the deal values Acacia at USD787 million, and the stake under offer at USD285 million. Acacia's market capitalisation in London was GBP654.1 million at Tuesday's closing price.
Acacia is considering the offer, it said, as Barrick continues to make "significant progress" in coming to terms with the government of Tanzania over Acacia's problems in the country.
Acacia, which is not party to the talks, did say the government has warned it will not sign any resolution if Acacia is one of the counterparties to the agreements.
"As a consequence of the negotiations with the government of Tanzania, Barrick has had the opportunity to undertake detailed due diligence on the Acacia assets and on the basis of this work has concluded the proposal on the terms set out above reflects the fair value of the company," said Barrick.
"Since the proposal is in Barrick shares, the Acacia minority shareholders will be able to benefit from any future potential upside in both the Acacia assets and Barrick's broader portfolio of assets."