Randgold Resources Limited (GOLD) to be acquired by Barrick Gold (ABX) for $18.3B

• Toronto-based Barrick will own around two-thirds of the combined group, the companies said in a statement Monday, with Randgold's Mark Bristow serving as CEO and Barrick's John Thorton keeping his role as executive chairman. 
• The newly-created group will have a market value of around $18.3 billion, hold five of the world's ten largest bullion deposits and have the ability to produce around 5.5 million ounces of gold each year. 

  

 

Randgold Resources confirms merger with Barrick Gold (ABX) 

Under the terms of the Merger, each Randgold Shareholder will receive 6.1280 New Barrick Shares for each Randgold Share. Following completion of the Merger, Barrick Shareholders will own approximately 66.6 per cent and Randgold Shareholders will own approximately 33.4 per cent of the New Barrick Group on a fully-diluted basis. The Merger is expected to close by Q1 2019.

• The Boards of Barrick and Randgold believe that the Merger will create an industry-leading gold company with the greatest concentration of Tier One Gold Assets in the industry, the lowest total cash cost position among Senior Gold Peers, and a diversified asset portfolio positioned for growth in many of the world's most prolific gold districts.
• Based on Barrick and Randgold's Closing Prices as of 21 September 2018 (being the last business day prior to the date of this announcement), the New Barrick Group will have an aggregate market capitalization of USD 18.3 billion. In addition, based on the 2017 financial results for both companies, the New Barrick Group would have generated aggregate revenue of approximately USD 9.7 billion and aggregate Adjusted EBITDA2 of approximately USD 4.7 billion.

Barrick Gold (ABX) enters investment agreement with Shandong Gold Group which will purchase up to $300 million of Barrick shares 
Shandong Gold will purchase up to $300 million of Barrick shares, and Barrick will invest an equivalent amount in shares of Shandong Gold Mining Co. Ltd., a publicly listed company controlled by Shandong Gold. Shares will be purchased in the open market. Barrick and Shandong Gold are 50-50 joint venture partners at the Veladero mine in Argentina, the first step in the partnership between the two companies.

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