Shareholders of Arequipa Resources (AQP-T) have tendered 93% of the outstanding shares of the company under the terms of the offer from Barrick Gold (ABX-T).
Most Arequipa shareholders opted for the share exchange option; of the 33.7 million shares tendered before the offer’s deadline, 70% were submitted for the share trade. Since Barrick’s bid limited the number of new Barrick shares that would be issued in exchange, the shareholders who chose the trade option will receive 0.79 of a Barrick share and 50 cents cash per share for 72% of their shares, and $30 per share for the remainder.
The whole deal will cost Barrick $512 million in cash and 13.4 million shares. Barrick will be buying up the remaining shares in Arequipa through compulsory acquisition provisions in the securities laws.
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