By Oliver Griffin
Acacia Mining said on Friday that it has reached an agreement for majority shareholder Barrick Gold Corp to buy the shares it doesn't already own in a deal valuing it at approximately 951 million pounds ($1.19 billion).
The Tanzania-focused mining company said the new increased offer from Barrick--which already owns a 63.9% stake in Acacia--will see the Canadian miner offer 0.168 of its shares for every Acacia share.
At current share prices this implies a value of 232 pence per Acacia share, making for a total consideration of GBP343 million for the company's minority shareholders. A previous proposal from Barrick offered 0.153 of its shares for every Acacia share.
Acacia shareholders will also be entitled to receive special dividends from exploration properties and any deferred cash-consideration dividends. Under the terms of the deal Barrick has agreed to sell Acacia's exploration properties, which are located in a number of African countries, including Tanzania, Kenya and Mali.
An independent review has suggested a preferred value of $57 million for Acacia's exploration properties.
Write to Oliver Griffin at email@example.com; @OliGGriffin