Two leading independent proxy advisory firms have recommended that shareholders of Randgold Resources vote FOR shareholder resolutions in relation to the proposed merger with Barrick Gold Corporation.
This announcement was made by Randgold yesterday. The two advisory firms are Institutional Shareholder Services and Glass Lewis.
On 25 September the boards of Barrick Gold and Randgold Resources announced they had reached agreement on a share-for-share merger of Barrick and Randgold to create “an industry-leading gold company with the greatest concentration of tier one gold assets in the industry, the lowest total cash cost position among senior gold peers and a diversified asset portfolio positioned for growth in many of the world’s most prolific gold districts”.
The new Barrick Group will, on completion of the merger, have ownership of five of the world’s top ten tier one gold assets by total cash cost with two potential tier one gold assets under development or expansion:
“The combination of Barrick and Randgold will create a new champion for value creation in the gold mining industry, bringing together the world’s largest collection of tier one gold assets, with a proven management team that has consistently delivered among the best shareholder returns in the gold sector over the past decade,” John L. Thornton, executive chairman of Barrick said at the time of announcing the deal.
“Our overriding measure of success will be the returns we generate and not the number of ounces we produce, balancing boldness and prudence to deliver consistent and growing returns to our fellow owners, a truly simple but radical and achievable concept.
“There are no premiums in the merger because we strongly believe in the opportunity to add significant value for our shareholders from the disciplined management of our combined asset base and a focus on truly profitable growth.”