Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/acacia-mining-plc" target="_blank" data-smartkarma-citation="entities:21801:1" rel="noopener">Acacia Mining (ACA LN)</a> has finally backed an increased takeover by parent <a href="https://www.smartkarma.com/entities/barrick-gold-corp" target="_blank" data-smartkarma-citation="entities:21023:1" rel="noopener">Barrick Gold (GOLD US)</a>. 
Barrick is <a href="https://barrick.q4cdn.com/788666289/files/doc_news/2019/07/Acacia-2.7-announcement.pdf" target="_blank" rel="noopener">offering</a> 0.168 GOLD share for every Acacia share - a ~10% increase to its initial 0.153 scrip offer back in May -  implying an Offer Price of 232p/share, a 54% premium to Acacia's closing price of 151p on May 20, the day before Barrick's <a href="https://www.acaciamining.com/media/press-releases/2019/2019-05-22.aspx" target="_blank" rel="noopener">first approach</a>.
The agreed Proposal, which occurred on the (twice) extended <a href="https://www.acaciamining.com/media/press-releases/2019/2019-07-09.aspx" target="_blank" rel="noopener">deadline</a>, values Acacia at £951mn or ~£343mn for the 36% stake Barrick does not own. The terms are final. Acacia had previously appointed SRK to carry out an independent review of its mines and returned with a value between 271p to 281p per share.
Barrick has been acting as the go-between with the Tanzanian government (GoT) to identify a proposed resolution to resolve Acacia's problems in the country, which have been ongoing for more than two years. 
With Acacia excluded from the discussions between Barrick and the GoT, it was a logical and foregone conclusion for Barrick to take over Acacia. 
The implied Offer is the highest level since disputes first surfaced in March 2017. Shareholders should take the deal. Currently trading at a 3.9% gross spread to terms.

Acacia Mining (ACA LN) has finally backed an increased takeover by parent Barrick Gold (GOLD US). 
Barrick is offering 0.168 GOLD share for every Acacia share - a ~10% increase to its initial 0.153 scrip offer back in May -  implying an Offer Price of 232p/share, a 54% premium to Acacia's closing price of 151p on May 20, the day before Barrick's first approach.
The agreed Proposal, which occurred on the (twice) extended deadline, values Acacia at £951mn or ~£343mn for the 36% stake Barrick does not own. The terms are final. Acacia had previously appointed SRK to carry out an independent review of its mines and returned with a value between 271p to 281p per share.
Barrick has been acting as the go-between with the Tanzanian government (GoT) to identify a proposed resolution to resolve Acacia's problems in the country, which have been ongoing for more than two years. 
With Acacia excluded from the discussions between Barrick and the GoT, it was a logical and foregone conclusion for Barrick to take over Acacia. 
The implied Offer is the highest level since disputes first surfaced in March 2017. Shareholders should take the deal. Currently trading at a 3.9% gross spread to terms. 

Barrick/Acacia: Now, Let The Grown-Ups Talk

Materials, IPO & Equity Analyst

Venkat Ramana Nandyal

Thematic (Sector/Industry)

Gold has had a great run in the last 15 years, beating almost all the other class. Is it the beginning of an another super cycle or is the current run going to peter out? We analyse gold as an investment vehicle, inflation hedge and its status as “asset of last resort”. We also look at the current trends in demand and supply and try to answer the eternal question “is it the right time to invest in gold or gold stocks”.

Gold has had a great run in the last 15 years, beating almost all the other class. Is it the beginning of an another super cycle or is the current run going to peter out? We analyse gold as an investment vehicle, inflation hedge and its status as “asset of last resort”. We also look at the current trends in demand and supply and try to answer the eternal question “is it the right time to invest in gold or gold stocks”.  

Gold: Is It the Beginning of New Golden Era or End of the Bull Run?

United Kingdom

Acacia Mining plc operates as a mining company. The Company acquires and explores for and produces gold in Tanzania.

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Acacia Mining (ACA LN)

Barrick/Acacia: Now, Let The Grown-Ups Talk

Acacia Mining (ACA LN) has finally backed an increased takeover by parent Barrick Gold (GOLD US). Barrick is offering 0.168 GOLD share for every...

David Blennerhassett

Gold: Is It the Beginning of New Golden Era or End of the Bull Run?

Gold has had a great run in the last 15 years, beating almost all the other class. Is it the beginning of an another super cycle or is the current...

Venkat Ramana Nandyal

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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