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December 3, 2019updated 02 Nov 2021 9:40am

Endeavour proposes merger with Centamin

Endeavour Mining Corporation has announced that it is looking to agree to a merger with Centamin plc for just under £1.5bn due to its “compelling long-term value creation opportunity.”

By Jack Unwin

 The Endeavour Mining Corporation has announced that it is looking to agree to a merger with Centamin due to the latter’s “compelling long-term value creation opportunity.”

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The company has outlined three critical reasons it has proposed the merger, which it values at just under £1.5bn. The first is that it would enable a “diversified high quality portfolio” with Centamin’s mines including Sukhari in Egypt, Houndé in Burkina Faso and Ity in the Ivory Coast.

Secondly, Endeavour stated that the combined management team would benefit from its expertise in operations, new projects and explorations, having boosted the company’s share price by 320% since late 2015. Finally, Endeavour hopes that the combined entity would offer a “stable, diversified and sustained cash flow profile” which would underpin the company’s balance sheet strength.

The merger proposal was sent to Centamin on the 25 November, with Endeavour offering an exchange ratio of 0.0846 shares for each Centamin share. As such, Endeavour shareholders would own 52.9% of the combined group and Centamin 47.1%.

If the merger were to take place it is estimated that the combination of Endeavour and Centamin would own 15.9 million ounces (Moz) of gold in reserves and be able to produce 1.2 Moz of gold per year, production that would put it among the top 15 gold producers in the world.

Endeavour chairman Michael Beckett said: “We firmly believe that the proposed combination between Endeavour and Centamin provides a compelling value creation opportunity for both sets of shareholders which is superior to what can be achieved by each company on a standalone basis.

“Despite repeated good faith attempts to engage with Centamin, our efforts have been frustrated by their refusal to entertain any discussions about a Merger before entering into a standstill agreement.

“Our management team has demonstrated a disciplined approach to business development opportunities and the Endeavour board will continue to be prudent allocators of capital to opportunities that it believes are aligned with its long-term strategic objectives, and that create value for shareholders.”

Centamin has been approached for comment but has yet to respond.

Endeavour’s share price rose by over 1.5% from CAD$25.37 to CAD$25.79 on the Toronto Stock Exchange, giving the company a market cap value of CAD$2.83bn.

Endeavour share price in 2019

Centamin’s share price grew by over 9% from 111.10p to 122.60p on the London Stock Exchange at the time of writing, giving the company a market cap value of £1.42bn.

Centamin share price in 2019

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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