Barrick spins off Africa unit; reports 118 per cent jump in Q4 net
19 Feb 2010
Canada's Barrick Gold, the world's biggest gold miner by market capitalisation, yesterday spun off its African unit by creating a new company African Barrick Gold (ABG).
ABG will hold Barrick's African gold mines and exploration properties.
"As an Africa-focused public company, we believe that the new company will be better positioned to generate shareholder value from its operating platform,'' Barrick's president and CEO, Aaron Regent said in a statement yesterday.
Barrick also intends to list the new company's shares with the United Kingdom Listing Authority and to admit to trading on the London Stock Exchange.
African Barrick Gold will offer approximately 25 per cent of its equity in an initial public offering (IPO) and Barrick will retain the remaining interest.
ABG also plans a future listing on the Dar es Salaam Stock Exchange in Tanzania to enhance the profile of the new company in Tanzania and allow for local participation.