Barrick Gold Corp. to acquire Randgold Resources Ltd. for US $5,466.82 million

JERSEY - Barrick Gold Corp (Barrick) of Canada agreed to merge with Randgold Resources Ltd (Randgold), a St Helier- based gold ore mine operator, for a total GBP 4.636 bil (USD 6.062 bil), in a stock swap transaction, via a scheme of arrangement. Barrick offered 6.128 new common shares per Randgold ordinary share. Based on Barrick’s closing stock price of GBP 8.007 (USD 10.47) on 21st September 2018, the last full trading day prior to the announcement, each Randgold share was valued at GBP 49. 067 (USD 64.16). Originally, in September 2018, Barrick was rumored to be planning to merge with Randgold. Barrick received irrevocable undertakings to accept the offer with respect to 1.056% of Randgold’s ordinary share capital. Upon completion, Randgold ordinary shares will be delisted from the London Stock Exchange and Barrick was to own 66.852% and Randgold was to own the remaining 33.148% in the new combined entity. 

The purposes of the transaction were for Barrick Gold Corp to offer new products and services, strengthen operations and expand its presence in new geographical regions, to create synergies, increase shareholder value and to take advantage of sound investment opportunities. 

Date Announced: 09/24/2018
Deal Status (as of publication date): Pending
Deal Value (US mil): $ 5,466.82

ACQUIRER ADVISORS*
Morgan Stanley (Financial Advisor)
M. Klein & Co. LLC (Financial Advisor)
Davies Ward Phillips & Vineberg LLP (Legal Advisor)
Freshfields Bruckhaus Deringer (Legal Advisor)
Cravath, Swaine & Moore (Legal Advisor)
Carey Olsen (Legal Advisor)
Borden Ladner Gervais LLP (Counsel to Financial Advisor)

TARGET ADVISORS*

Canadian Imperial Bank of Commerce (Financial Advisor)
Barclays
(Financial Advisor)
Norton Rose Fulbright LLP (Legal Advisor)
Stikeman Elliott LLP (Legal Advisor)
Ogier & Le Masurier (Legal Advisor)

Randgold Resources Ltd., headquartered in St. Helier, Jersey, is a gold mining company. The Company is involved in gold mines exploration and diamond drilling activities in East and West Africa. It operates the Morila, Kibali, Massawa, Tongon and Loulo-Gounkoto gold mines. The Company was founded in August 1995. 

Barrick Gold Corp., located in Toronto, Ontario, is a gold mining company. The Company has a portfolio of 27 operating mines and advanced exploration and development projects across the world. It is also engaged in exploration and development of copper and nickel mines. It has operations in the United States, Canada, South America, Australia, and Africa. It’s projects include Pueblo Viejo, Pascua-Lama, Cerro Casale, Bald Mountain, Cortez, Cowal, Kanowna, and Zaldivar Projects, among others. The Company was founded in 1984. 

*List of advisors are those known at press time.