August 16, 2012 - 3:33 AM
TORONTO - Barrick Gold says it is in preliminary discussions with China National Gold Group Corporation over its majority stake in African Barrick Gold.
The world's largest gold producer (TSX:ABX) says discussions are at an early stage, with no guarantee that talks will result in China Gold buying all or part of its 74 per cent stake in ABG.
Barrick says the talks are in line with its focus on maximizing shareholder value through a disciplined capital allocation program.
The company says it remains "both committed to and confident in ABG, its qualified and experienced management team and its portfolio of world-class assets."
Barrick says any offer made for its stake in ABG will lead to an offer being made to all shareholders in ABG.
ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa.
It has released a separate statement saying if China Gold decides to acquire more than 30 per cent of the voting interest in ABG, it would be required to make an offer for a full takeover.
News from © The Canadian Press, 2012