Barrick CEO lets hard image slip for sensible deal

  • Barrick CEO lets hard image slip for sensible deal

Barrick CEO lets hard image slip for sensible deal

Barrick, the world's biggest gold miner, said it would pay 0.168 new Barrick share for each share it does not own of the FTSE 250 company.

The agreement brings to an end a long-running row between the two over the value of the company's three mines.

Acacia has been in a protracted tax battle with the government of Tanzania. Barrick's increased offer reflects a higher valuation for the assets that were part of the dispute.

The deal with Barrick will be "a good opportunity to rebuild relationships", Geleta said.

Since then, Acacia has faced export restrictions, reduced production, and accusations of environmental and financial violations as negotiations dragged on. But Acacia acknowledged that a takeover would be the best solution to its problems. And there are early signs from the Tanzanians that could be the case.

Tanzania's government was positive about the deal on Friday. "We will eagerly wait for official communication from Barrick to chart the way forward", Tanzania government spokesman Hassan Abbasi tweeted.

In May, discussions between Barrick and the government advanced to a point where draft transaction documents for a possible settlement had been extensively negotiated and initialled by the government.

The companies also announced that Barrick would sell Acacia's exploration properties over the next two years, with net proceeds to be paid to Acacia shareholders.

But that is still lower than the 271 pence per share Acacia said it was worth earlier this month under a "preferred-value" scenario, based on an independent review. That event essentially forced Barrick into making a takeover attempt for Acacia as a way out of the morass.

It is hoped that with the buyout, Barrick would be able to preserve the value of Acacia's assets.

"Any rational board will say, how can you operate in a country like this?" Kerry Smith, analyst with Haywood Securities Inc. said in an interview.

Mr. Smith says a state-owned Chinese firm is the likely and rational buyer of Acacia.