{"id":537,"date":"2019-07-20T09:25:08","date_gmt":"2019-07-20T06:25:08","guid":{"rendered":"https:\/\/www.muhunda.co.tz\/?p=537"},"modified":"2019-07-20T09:30:20","modified_gmt":"2019-07-20T06:30:20","slug":"barrick-acacia-finally-in-accord","status":"publish","type":"post","link":"https:\/\/www.muhunda.co.tz\/?p=537","title":{"rendered":"Barrick, Acacia finally in accord"},"content":{"rendered":"<div class=\"lede-text-v2 lede\">\n<div class=\"lede-text-v2__container\">\n<div class=\"lede-text-v2__content\">\n<h2 class=\"lede-text-v2__hed\">Barrick and Acacia Reach Buyout Deal, Ending Long Standoff<\/h2>\n<address class=\"lede-text-v2__byline\">\n<div class=\"author-v2\"><a class=\"author-v2__byline\" href=\"https:\/\/www.bloomberg.com\/authors\/ARoWeX8LqXk\/elena-mazneva\" rel=\"author\">Elena Mazneva\u00a0<\/a> and\u00a0<a class=\"author-v2__byline\" href=\"https:\/\/www.bloomberg.com\/authors\/ASUCdgTbb60\/danielle-bochove\" rel=\"author\">Danielle Bochove<\/a> <time class=\"article-timestamp\" datetime=\"2019-07-19T06:25:15.313Z\" data-type=\"updated\" data-status=\"localized\">July 18, 2019, 11:25 PM PDT<\/time>\u00a0<span class=\"updated-wrap\"><span class=\"updated-text\">Updated on\u00a0<\/span><time class=\"article-timestamp\" datetime=\"2019-07-19T12:08:50.174Z\" data-type=\"updated\" data-status=\"localized\">July 19, 2019<\/time><\/span><\/div>\n<\/address>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-well-v2\">\n<section class=\"main-column-v2\">\n<ul class=\"abstract-v2\">\n<li class=\"abstract-v2__item\">\n<div class=\"abstract-v2__item-text\">Acacia shares rallied as much as 20% after deal announcement<\/div>\n<\/li>\n<li class=\"abstract-v2__item\">\u00a0Deal may pave the way to solving Acacia\u2019s dispute in Tanzania<\/li>\n<\/ul>\n<div class=\"body-columns\">\n<div class=\"middle-column\">\n<div class=\"body-copy-v2 fence-body\">\n<aside class=\"left-column\">\n<div class=\"share-article-button\">\n<div class=\"share-article-button__option\"><\/div>\n<\/div>\n<div class=\"blens\">\n<div class=\"datastrip datastrip__c0b5bbd3 blens__cb47e381\">\n<div class=\"instruments__c06d06c1\">\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c private__db30f128\">\n<div class=\"itemPrice__20199d3e\">For the past two years, <a title=\"Financial Analysis\" href=\"https:\/\/www.bloomberg.com\/quote\/ACA:LN\" target=\"_blank\" rel=\"noopener noreferrer\">Acacia Mining Plc<\/a> has faced deteriorating relationships with its largest shareholder, Barrick Gold Corp. and the government of Tanzania. Now, one of those battles has found a truce.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<div class=\"softwall\" data-position=\"1\"><\/div>\n<p>The two companies\u00a0<a class=\"terminal-news-story\" title=\"ACACIA MINING PLC: Offer by Barrick Gold Corporation\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/PUVL0B3MSFLS\" target=\"_blank\" rel=\"noopener noreferrer\">said<\/a>\u00a0Friday that they reached a deal for Barrick to buy the roughly 36% stake in Acacia it doesn\u2019t already own. Barrick sweetened its offer to win over Acacia shareholders, some of whom had decried the previous bid as too low. The new offer has an implied value of about 232 pence per Acacia share, a 24% premium to the closing price on Thursday.<\/p>\n<p>\u201cGiven all the circumstances, this is possibly the best outcome,\u201d Acacia\u2019s acting Chief Executive Officer Peter Geleta said by phone.<\/p>\n<p>The agreement paves the way for Barrick to negotiate with Tanzania in hopes of resolving a public battle that crippled Acacia\u2019s operations in the country, where it runs three gold mines. Acacia hopes the talks will help set up a \u201cnew partnership\u201d with the Tanzanian government, Geleta said.<\/p>\n<p>\u201cI\u2019m pleased that after engaging with shareholders, Barrick has reconsidered its initial offer,\u201d said James Goldstone, a fund manager at Invesco, which holds less than 1% of Acacia. \u201cIt\u2019s a compromise,\u201d he said, without elaborating on how his fund would vote.<\/p>\n<figure class=\"figure-expandable\" data-type=\"image\" data-id=\"340741045\" data-image-type=\"photo\" data-image-size=\"full\" data-align=\"center\">\n<div class=\"image\" tabindex=\"0\" role=\"button\" aria-label=\"Open image in viewer\">\n<div id=\"lazy-img-340741045\" class=\"lazy-img\"><img decoding=\"async\" class=\"lazy-img__image loaded\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ikkbmwNL53Ok\/v0\/800x-1.jpg\" alt=\"relates to Barrick and Acacia Reach Buyout Deal, Ending Long Standoff\" data-native-src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ikkbmwNL53Ok\/v0\/-1x-1.jpg\" data-img-type=\"photo\" \/><\/div>\n<\/div><figcaption>\n<div class=\"news-figure-caption-text caption\">\n<p>Acacia Mining North Mara mine.<\/p>\n<\/div>\n<\/figcaption><\/figure>\n<div id=\"desktop-in-article-1-PUUTIS6KLVR401\" class=\"page-ad\" tabindex=\"-1\" role=\"presentation\" data-position=\"desktop-in-article\">\n<div class=\"desktop-in-article-ad-dummy\">A successful deal would close the nearly decade-long chapter of Acacia\u2019s life as a public miner, after the unit was spun out in 2010 as African Barrick Gold. Since then, it has fended off challenges spanning an <a class=\"terminal-news-story\" title=\"African Barrick Suffers Record Drop as Criminal Gangs Hit Mine\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/LA9SQA0YHQ0X\" target=\"_blank\" rel=\"noopener noreferrer\">infiltration<\/a>\u00a0by criminal gangs, to\u00a0<a title=\"African Barrick Says 7 Intruders Shot Dead at Mine; to Probe (2)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2011-05-17\/african-barrick-says-7-intruders-shot-dead-at-tanzanian-mine-to-probe\" target=\"_blank\" rel=\"noopener noreferrer\">invasion<\/a>\u00a0by hundreds of intruders armed with machetes and hammers and mining-tax\u00a0<a class=\"terminal-news-story\" title=\"African Barrick Tumbles on Tanzania Plan for Mining Super Tax\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/LMGW4Q6JIJUR\" target=\"_blank\" rel=\"noopener noreferrer\">changes<\/a>.<\/div>\n<\/div>\n<p>Its biggest challenge came two years ago, when Tanzania imposed an export ban on two of Acacia\u2019s units and handed the miner a $190 billion tax bill. Since then, the company\u2019s position in the country has\u00a0<a title=\"Tanzania Says Acacia Mining Won\u2019t Be Allowed Role in Country (1)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-05-28\/tanzania-says-acacia-mining-won-t-be-allowed-any-role-in-country\" target=\"_blank\" rel=\"noopener noreferrer\">deteriorated further<\/a>, with the government saying in May it would no longer allow Acacia to manage its mines in the country and will only work with Barrick.<\/p>\n<p>Just this week, Tanzania\u00a0<a title=\"Acacia Hits More Tanzanian Roadblocks as Barrick Bid Looms (1)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-07-17\/acacia-hits-more-problems-in-tanzania-as-barrick-gold-bid-looms\" target=\"_blank\" rel=\"noopener noreferrer\">ordered<\/a>\u00a0Acacia to stop using a waste-storage facility at its core gold mine, which could disrupt production.<\/p>\n<p>More Info\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-07-19\/barrick-gold-reaches-agreement-to-buy-out-acacia-mining\">Barrick and Acacia Reach Buyout Deal<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Barrick and Acacia Reach Buyout Deal, Ending Long Standoff Elena Mazneva\u00a0 and\u00a0Danielle Bochove July 18, 2019, 11:25 PM PDT\u00a0Updated on\u00a0July 19, 2019 Acacia shares rallied as much as 20% after deal announcement \u00a0Deal may pave the way to solving Acacia\u2019s dispute in Tanzania For the past two years, Acacia Mining Plc has faced deteriorating relationships &hellip; <a href=\"https:\/\/www.muhunda.co.tz\/?p=537\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Barrick, Acacia finally in accord<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-537","post","type-post","status-publish","format-standard","hentry","category-dse-stocks-bonds"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=\/wp\/v2\/posts\/537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=537"}],"version-history":[{"count":0,"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=\/wp\/v2\/posts\/537\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.muhunda.co.tz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}