Market Tracker weekly bulletin – 8th November 2018

Market Tracker weekly bulletin – 8th November 2018

A round up of key developments in corporate transactions covered by Lexis®PSL Corporate and Market Tracker this week, including a summary of the offer for Randgold Resources Limited by Barrick Gold Corporation, an update on the shareholder meeting at Patisserie Holdings plc, an overview of the proposed amendments to the Companies Act and the Takeover Code post-Brexit, and a look at the Gender Pay Gap briefing by the House of Commons. Our focus this week is on returns of value via buyback to shareholders in the mining industry this year.

Transactions

Takeovers

Randgold Resources Limited offer by Barrick Gold Corporation

On 14 September 2018, Canadian incorporated company Barrick Gold Corporation (Barrick) and UK incorporated company Randgold Resources Limited (Randgold) announced a recommended share for share merger to create ‘an industry leading gold company’. The merger was structured as a scheme of arrangement under Article 125 of the Companies (Jersey) Law 1991. On the announcement of the merger, Mark Bristow, Chief Executive of Randgold stated:

 ‘Our industry has been criticised for its short-term focus, undisciplined growth and poor returns on invested capital. The merged company will be very different. Its goal will be to deliver sector leading returns, and in order to achieve this, we will need to take a very critical view of our asset base and how we run our business, and be prepared to make tough decisions. By employing a strategy similar to the one that proved very successful at Randgold, but on a larger scale, the New Barrick Group will leverage some of the world’s best mines and talent to create real value for all stakeholders.’

On 31 October 2018, Randgold and Barrick announced an increase in dividends. Under the increased dividend policy Randgold shareholders are entitled to receive a 25% increase in dividends for the 2018 financial year from £1.52 to £2.04 (US$2.00 to US$2.69) and Barrick shareholders are entitled to receive an increase in their quarterly dividend

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About the author:
Jenisa is Head of Market Tracker, a transaction analysis product that sits within Lexis®PSL Corporate. She has over 13 years of legal publishing experience, with a focus on researching and reporting on trends and developments in the corporate and commercial legal market. Previous roles include content developer for Lexis®PSL, Legal Podcaster at Informa, and Research Editor at Practical Law Company where she specialised in reporting on cross-border corporate and commercial developments from the firm’s New York office.