Acacia tells Barrick its ‘preferred value’ as takeover deadline extended again

Acacia Mining has released a report by a consultant that estimates its value to be 38% higher than the offer made by its majority shareholder Barrick Gold, extending the dispute between the two gold miners.

The report put Acacia’s ‘preferred value’ at 271 pence per share, significantly higher than Barrick’s informal all-share offer from May, which values the company at 197 pence per share.

Barrick said in a statement it is reviewing the report against its own due diligence study of Acacia’s assets, and also confirmed its request to postpone making a firm offer until July 19 has been approved by the UK takeover panel.

This is the second time the takeover deadline has been extended after Barrick refused to raise its US$285 million bid for the remaining 36.1% of Acacia’s shares – an offer that Acacia’s minority shareholders continue to believe undervalues the company.

But the quarrel between the firms run deeper than the takeover price, as Acacia continues to be locked out of negotiations with the Tanzanian government regarding an enormous $190 billion tax bill and mineral export ban for alleged misreporting of revenues.

Barrick has been negotiating a resolution on behalf of its subsidiary as top officials in the East African country won’t engage with Acacia in any way, according to the Barrick’s CEO Mark Bristow.