Tusker board approves Barrick offer

The board of Tusker Gold has unanimously recommended an 80 cent per share takeover bid from Barrick Gold.

The board of Tusker Gold has unanimously recommended its shareholders accept a takeover bid from Barrick Gold.

Barrick is offering 80 cents cash per share to acquire all of Tusker’s issued shares.

The bid represents a 90% premium on Tusker’s share price at the close of 29 January, which was the last trading day prior to the offer.

Barrick already owns 49% of Tusker’s flagship asset, the Nyanzaga gold project in Tanzania.

Indago Resources, Tusker’s controlling shareholder with a 67.5% stake, stands to earn up to $54 million before tax if the deal is completed.

The company has entered into pre-bid acceptance agreement to initially hand over 17.5% to Barrick for $14 million.

This will represent a 60% profit on the 22 cents per share Indago paid during the target’s initial public offer late last year.

In a statement released yesterday, Indago confirmed it would sell the remainder of its holdings, which represent a 50% stake, unless a superior proposal is presented.

Barrick has also entered into a similar pre-bid agreement with Blue Capital, which owns 2% of the target.

The bidder’s statement will be lodged with the Australian Securities and Investments Commission later this month.

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