TORONTO – Barrick Gold Corp. (TSX:ABX) says it has divested part of its holdings in African Barrick Gold plc.
Barrick says about 41 million ordinary shares it indirectly holds in African Barrick, representing about 10 per cent of the company, have been placed with institutional investors.
Based on Monday’s closing price of African Barrick (LON:ABG) on the London Stock Exchange of just over three British pounds, the value of the stock would be about more than C$233 million.
Barrick Gold, which announced its intentions on Monday, said the shares being divested represent about 13.5 per cent of its holdings in ABG.
The company continues to hold about 262 million ordinary shares of ABG.
“Barrick continues to support ABG management as they advance the operational turnaround and make other efforts to improve the business.” said Barrick president and CEO Jamie Sokalsky.
“After this transaction, Barrick will still be a controlling shareholder, but this transaction allows us to realize some liquidity from our holding in ABG in keeping with our disciplined capital allocation framework and our ongoing program to optimize and lower the average cost of our portfolio.”