Barrick completes acquisition

Shareholders of Sutton Resources (STT-T) have overwhelmingly approved a takeover bid by Barrick Gold (ABX-T), offering 91% of their shares to the major.

Under the terms of the Barrick offer, which had been conditional on the tendering of at least 75% of Sutton’s shares, each Sutton shareholder is entitled to receive 0.46 of a Barrick share (T.N.M., March 15-21/99).

At the time of the bid on Feb. 16, Barrick’s shares closed at $28.60, putting a value of $525 million on the acquisition, or $13.25 for each of Sutton’s 39.6 million fully diluted shares, representing an 89% premium over Sutton’s $7 closing price on that same day.

On March 26, when the Barrick offer expired, the major’s shares closed at $26.55, putting a value of $12.30 on each Sutton share.