UK Court Orders Barrick Gold to Pay $2 Million to Ian Hannam’s Firm
LONDON – Canada’s Barrick Gold has been ordered to pay $2 million plus expenses to British dealmaker Ian Hannam’s firm, Hannam & Partners, for its role in the 2018 acquisition of gold miner Randgold Resources, London’s High Court ruled on Wednesday.
Hannam, a former top banker at JPMorgan, earned the nickname “king of mining” for brokering major resource sector deals, including the 2001 merger that created BHP Billiton and the 2012 Glencore-Xstrata merger.
Hannam & Partners sued Barrick over an alleged agreement made before the Randgold acquisition, claiming it was promised a minimum of $10 million, with the amount increasing if the deal exceeded $10 billion.
When Barrick’s acquisition of Randgold ultimately reached around $18 billion, Hannam & Partners sought an $18 million fee but was denied.
Barrick argued there was no written contract confirming the agreement and insisted Hannam & Partners was not entitled to any payment.
In his ruling, Judge Simon Gleeson stated that while “no contract to provide investment advisory services was ever made,” Hannam & Partners’ early involvement in promoting the deal provided “a valuable benefit” to both Barrick and Randgold. Recognizing this contribution, the companies had intended to compensate the firm, estimating the value at $2 million.
As a result, the court awarded Hannam & Partners $2 million plus expenses.
Neil Passmore, CEO of Hannam & Partners, called the ruling “a seminal judgment for the investment banking industry,” highlighting that a significant fee was awarded despite the absence of a formal contract.
Barrick also viewed the ruling as a win, stating that the court awarded Hannam & Partners only “the amount Randgold proposed to pay in September 2018 for its limited involvement in the transaction.”
