FTSE 250 precious metals miner African Barrick Gold (ABG) has announced that it has formed a 'Transaction Committee' as it prepares for a potential offer from China's largest gold producer, China National Gold Group.
As announced on August 16th, Barrick Gold, the US holding company of ABG, is in talks with China Gold about the possibility of selling its 73.9% stake in the London-listed miner.
The Transaction Committee is made up of three independent non-executive directors (Michael Kenyon, Derek Pannell and David Hodgson), meanwhile ABG has appointed JP Morgan Cazenove and RBC Capital Markets as financial advisers "in order to ensure that ABG is appropriately prepared and that the interests of all shareholders are represented should this situation progress," the company said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Should China Gold buy up more than 30% of the voting interest in ABG, it would then be required to make an offer for the whole of ABG's issued ordinary share capital, ABG said last month.
However, once again ABG assured investors that "there can be no certainty that any offer for ABG will be forthcoming."
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
