Randgold Resources (LSE:RRS)
Historical Stock Chart
1 Year : From Jul 2018 to Jul 2019
By Adria Calatayud
Randgold Resources Ltd. (RRS.LN) and Barrick Gold Corp. (ABX.T) have agreed to an all-share merger that will create an $18.3 billion gold-mining giant.
Under the terms of the deal, each Randgold shareholder will receive 6.1280 new Barrick shares for each Randgold share held, the two companies said on Monday.
Barrick shareholders will own around 66.6% of the combined business on completion, with Randgold shareholders holding the remaining 33.4%, the companies said.
"The combination of Barrick and Randgold will create a new champion for value creation in the gold mining industry, bringing together the world's largest collection of tier one gold assets, with a proven management team that has consistently delivered among the best shareholder returns in the gold sector over the past decade," Barrick Executive Chairman John L. Thornton said.
The combined group will own five of the world's top 10 tier-one gold assets with 2 potential tier-one gold projects under development or expansion, the companies said. The new group will consider selling non-core assets over time, the companies said.
Based on 2017 results, the enlarged group would have generated revenue of $9.7 billion and adjusted earnings before interest, taxes, depreciation and amortization of $4.7 billion, the companies said.
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(END) Dow Jones Newswires
September 24, 2018 02:39 ET (06:39 GMT)
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