Shares in gold miner African Barrick Gold fall steeply in extremely heavy volume after parent company Barrick Gold Corp says it plans to sell about 13.5 percent of its holding in the Tanzania-focused miner.
The FTSE 250 stock falls more than 15 percent, on course to post its biggest daily fall in more than a year and underperforming a 0.1 percent decline in the UK mining sector, in volume that is 51 times its 90-day daily average approaching half way through the trading session.
“African Barrick has little growth from existing operations, has no greenfields projects and seems to have a parent happy to dispose of it, which does not bode well for its commitment to African investment,” Citi analysts writes in a note.
Toronto-based Barrick, which currently owns roughly 303.25 million shares in African Barrick, is selling 41 million shares. The gold miner will still own a majority stake of just over 60 percent in the Africa-focused miner following the close of the transaction.
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