Barrick Gold Warns Shareholders Against Below-Market Mini-Tender Offer
Canadian mining giant Barrick Gold has issued a caution to its shareholders regarding an unsolicited mini-tender offer from TRC Capital Investment.
The offer seeks to acquire up to five million of Barrick’s common shares, representing approximately 0.29% of its outstanding shares, at a below-market price of C$21.35 per share.
Barrick highlighted in a statement on Monday that the offer price reflects a discount of 4.52% on the Toronto Stock Exchange (TSX) and 4.38% on the New York Stock Exchange (NYSE) closing prices as of January 7.
The company clarified that it does not endorse or associate with TRC Capital’s mini-tender offer and advised shareholders against tendering their shares.
Mini-tender offers, like the one initiated by TRC Capital, typically avoid regulatory thresholds that mandate investor protections under Canadian and U.S. securities laws.
Both the Canadian Securities Administrators and the U.S. Securities and Exchange Commission (SEC) have raised concerns over such offers, warning investors to exercise caution.
The SEC has issued guidance for investors, noting that mini-tender offers are often made at below-market prices, with the intent of catching investors unaware if they fail to compare the offer price to current market values.
Barrick also reassured shareholders who have already tendered their shares, stating that they have the right to withdraw before 11:59 p.m. (Toronto time) on February 6 by following the procedures outlined in TRC Capital’s offer documents.
The company’s advisory underscores its commitment to protecting shareholder interests against potentially disadvantageous offers.
