Barrick offers better dividend terms to win over Randgold shareholders
Barrick says it will raise its own fourth-quarter dividend 40% and will target an ongoing annual dividend of 16c per share from a previously stated 12c
London — Canada’s Barrick Gold has sought to woo Randgold Resources shareholders with sweetened dividend terms, to mollify investors unhappy with its nil-premium takeover offer for the Africa-focused mining company. Toronto-listed Barrick announced in September that it had agreed to buy Randgold to create the world's largest gold company, but some analysts were critical of the lack of a premium in the $6.1bn deal. However, Randgold investors have now been promised a 35% increase on their share dividends. They will receive $2.69 per share in 2018, up from an initial $2 per share, Barrick said on Wednesday. "Based on Randgold’s dividend policy and its financial performance in 2018 to date, Randgold has determined that a dividend of $2.69 per share for 2018 would be consistent with that dividend policy," Barrick said in a statement. The dividend will be declared and paid prior to the merger closing, it added. "I assume it followed pushback from Randgold investors, who had been looking ...
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