16th Dec 2019 08:35
(Alliance News) - Endeavour Mining Corp on Monday said it has made tentative progress with FTSE 250 gold miner Centamin PLC ahead of the offer deadline.
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.
The merger values Centamin at around GBP1.47 billion, and Endeavour noted it has made several unsuccessful attempts at engaging with Centamin's board. Centamin shares were up 0.5% early Monday in London at 120.30 pence each, giving it a market capitalisation of GBP1.39 billion.
On Monday, Endeavour confirmed Chief Executive Sebastien de Montessus met with Centamin Chair Josef El-Raghy in Perth, Australia, on Saturday to discuss the merger.
The two have agreed they would both need to conduct due diligence, but Endeavour said the scope and timetable need to be decided. Endeavour has sent its own proposed timetable to Centamin, it noted.
Endeavour has until the end of the year to decide whether or not to make an offer, and it has asked Centamin to request an extension to this deadline. However, it said Centamin has not yet done so.
Endeavour stressed it will not make an offer before the December 31 deadline without the recommendation of the Centamin board.
Amid the Endeavour approach, Centamin on Friday last week appointed a new interim CEO, current Chief Financial Officer Ross Jerrard, as well as hiring Jim Rutherford as a non-executive director.
Rutherford will become deputy chair when incumbent Gordon Edward Haslam leaves at the 2020 annual general meeting, and he will eventually replace El-Raghy as chair by the end of 2020.
By George Collard; [email protected]
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