Mining

Endeavour launches all-share, hostile takeover attempt of Centamin

ENDEAVOUR Mining has launched a hostile takeover of Centamin, the single-asset UK-listed mining firm currently in search of a replacement CEO.

Shares in Centamin gained just over 8% in early London trade following Endeavour’s announcement today which was born of frustration following two attempts to engage with Centamin on a merger proposal in October 2018 and in November.

“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,” said Michael Beckett, chairman of Centamin.

A standstill agreement would prevent Endeavour advancing the offer to Centamin’s shareholders in the event Centamin management – currently seeking a replacement to its CEO, Andrew Pardey, who resigned this year – rejected the merger.

By making the merger proposal public, Endeavour is hoping to force the issue especially among Centamin’s shareholders which have had a tough time of things over the last 18 months following operational disappointments at Sukari, is Egypt-based gold mine.

In terms of Endeavour’s proposal, it will offer a 5% premium to the 30-day volume-weighted average prices of the Endeavour and Centamin representing a 13.1% premium to the closing price of Endeavour and Centamin as of Tuesday (December 2).

 

The post Endeavour launches all-share, hostile takeover attempt of Centamin appeared first on Miningmx.

Source: miningmx.com

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