18th Dec 2019 09:11
(Alliance News) - Centamin PLC on Wednesday said it is "disappointed" with Endeavour Mining Corp's behaviour as the two attempt to come up with a potential merger.
Canada's Endeavour at the start of December proposed a deal in which Centamin shareholders would get 0.0846 of an Endeavour share per Centamin share held, giving Centamin shareholders 47% of a combined company and valuing Centamin at GBP1.47 billion.
Centamin was 0.7% lower on Wednesday morning in London at a price of 116.45 pence per share, giving it a market capitalisation of around GBP1.35 billion.
On Monday this week, Endeavour said Chief Executive Sebastien de Montessus met with Centamin Chair Josef El-Raghy in Perth, Australia, on Saturday to discuss the merger. They agreed due diligence was needed for both parties, and Endeavour said it proposed a timetable for this to happen.
Endeavour also said it proposed an extension to the December 31 offer deadline, but said Centamin had not done so.
Centamin, which mines from Sukari in Egypt, said on Wednesday that since the Saturday meeting Endeavour has said it will not provide information needed by Centamin to conduct due diligence unless it extends the December 31 offer deadline.
"Without Endeavour providing information that is core to the assessment of value, such as its financial model, Centamin cannot properly assess the proposed combination," said Centamin.
"The Centamin board is disappointed that despite its efforts at constructive engagement, Endeavour has repeatedly refused to engage in a proper manner."
"The unsolicited approach from Endeavour has created an intense period of uncertainty for all of the company's stakeholders. Therefore, the board of Centamin believes Endeavour should, without further delay, enter into substantive reciprocal due diligence," it continued.
By George Collard; [email protected]
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