[miningmx.com] – THE sale of some 41 million shares in African Barrick by parent company, Barrick Gold, was hailed as a “positive step” by Brad Gordon, CEO of African Barrick who added the step increased the firm’s free-float.
“This is a positive step by Barrick which significantly increases our free float,’ said Gordon in an article by Bloomberg News. “The placing is a reflection of the increased interest in the business as a result of the progress we are making,’ he said.
The market had a different view, however, with African Barrick’s share price falling to its lowest level in more than a year. The shares sold by Barrick Gold, worth $188m in total, were equivalent to a 10% stake in African Barrick.
“This sale confirms that the parent is an ongoing seller and has been a potential seller since the 2010 IPO left it with more shares than it had hoped,’ Bloomberg News quoted Citigroup to have said.
“Having a parent keen to dispose of stock does not help with the image that Barrick has been an uncomfortable investor in Africa,’ the bank said.
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