Wednesday, June 19, 2019

DEADLINE EXTENDED FOR ACACIA TAKEOVER

By Our Reporter, Tanzania


Global mining firm Barrick Gold Corp has extended the deadline to take control of the remaining Acacia Mining Plc shares for 20 more days from June 18 to July 9, 2019.
Acacia North Mara gold mine in Tanzania
According to Acacia, Barrick, which holds majority shares (63.9 per cent), has requested that the Tanzania miner seek an extension to the “put up or shut up” (PUSU) deadline, “in order to provide further time to determine a proposal that might receive sufficiently shareholder support.”
Acacia announced on June 19 that it supported the deadline extension order to facilitate further engagement with its minority shareholders but strongly disagree with a number of statements made in the Barrick statements.
In the statement made available on its website today, Acacia said “The Company strongly disagrees with a number of statements made in the Announcement. The Company is also surprised with the circumstances and timing of the Announcement, which immediately followed earlier announcements regarding Acacia’s agreement to Barrick’s request for an extension to the PUSU Deadline. The Company will provide a detailed response to the relevant aspects of the announcement, as appropriate, in due course.
Shareholders are strongly urged to take no action at this time.
In accordance with Rule 2.6(a) of the Code, Barrick is required, by not later than 5.00pm on 9 July 2019, either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that they do not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.
Last month, Barrick proposed to take control of Acacia’s share capital to end a two-year dispute between the mining firm and the Government of Tanzania after Tanzania refused to finalize the deal with Acacia still in the picture.
Acacia mining operates in Tanzania in three mines: Bulyanhulu, North Mara and Pangea Minerals Limited.
For two years, Tanzania has blocked exports of gold and copper concentrate from Acacia mines and slapped the miner with $190 billion bill for tax evasion.
The tax bill was for historical corporate income tax for the period between 2000 and 2017. Tanzania said Acacia owes it $40 billion in unpaid taxes and $150 billion in penalties and interest.
The new deadline for the takeover will only be extended with the consent of the UK Takeover Panel in accordance with Rule 2.6(c) of the Code.


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