Barrick Gold Corp (NYSE:ABX) is planning to merge with the African gold mining company Randgold in a share-for-share deal with a $6.5 billion value. The two companies when combined will form a new company and will be a part of both the Toronto as well as the New York exchanges list. As per the report, the “new Barrick” will be a gold company leading the industry with its focus centered upon the Tier One Gold assets. The company will follow the lowest total cash cost and the highest adjusted EBITDA margins in the gold industry.
Even though the two companies are in favor of the merger, the deal will become final only after it gets approval from shareholders of both the companies, regulatory approvals and after fulfilling various customary conditions for the closing.
Terms of Barrick Gold and gold mining company Randgold merger
According to the Barrick Gold and gold mining company, Randgold merger terms for the formation of “new Barrick” each shareholder of the Randgold will receive 6.1280 shares of new Barrick Company. After the completion of merger formalities by the FQ 2019, Barrick Gold shareholders will be the owners of 66.6% shares whereas Randgold shareholders will receive the remaining 22.4% shares of the new company.
Also, each shareholder of Randgold will receive a $2/share annual dividend for 2018 only if permitted by the Randgold Board. Each shareholder of Barrick Gold will receive $0.14/share dividend annually only if permitted by the Board of Barrick Gold. The new company’s will form its head office in Toronto.
As per the merger deal, the “new Barrick” will get combined, proven and probable gold reserves of 78 ounces as well as an ownership of around 5 top 10 Tier One Gold assets in the world. These gold assets are the topmost when valued by total cash costs.
Sanders Morris cut down Its holdings in Barrick Gold
Sanders Morris Harris LLC recently cut down its holdings in the Canadian Barrick Gold Company by 4.6% during the third quarter. The former revealed the information in its most recent SEC filing. At present, the gold company with its headquarters in Toronto has around 1.1% of holdings of Sanders Morris making it the 24th biggest holding.