14th Jan 2020 11:16
(Alliance News) - Endeavour Mining Corp has ended discussions over a potential combination with FTSE 250-listed gold miner Centamin PLC, it said on Tuesday.
Endeavour said Centamin has not sought an extension to the offer deadline of Tuesday. Given the lack of information received, Endeavour said, it has now decided against bidding for Centamin.
Centamin shares were 4.2% lower on Tuesday morning in London at 121.88 pence each, giving a market capitalisation of GBP1.38 billion. Endeavour closed 1.7% lower in Toronto on Monday at CAD23.66, giving a market cap of CAD2.60 billion, or GBP1.53 billion.
"We remain convinced about the strategic rationale of combining Endeavour and Centamin to create a diversified gold producer with a high-quality portfolio of assets," said Endeavour Chief Executive Sebastien de Montessus.
"The quality of information received during the accelerated due diligence process has been insufficient to allow us to be confident that proceeding with a firm offer would have been in the best interests of Endeavour shareholders."
Endeavour in December had proposed a deal in which Centamin shareholders would get 0.0846 of an Endeavour share per Centamin share held, giving Centamin's shareholders a 47% stake in a combined company. The proposal valued Centamin at GBP1.47 billion.
Since then, the two have criticised each other's behaviour during merger talks, with Endeavour accusing Centamin of being unwilling to properly look into a combination.
Toronto-listed Endeavour has five producing mines: Karma and Hounde in Burkina Faso, Ity and Agbaou in the Ivory Coast, and Tabakoto in Mali. By contrast, Centamin solely mines from Egypt's Sukari.
The interest from Endeavour came amid ongoing operational issues at Sukari. Centamin has since changed leadership, with Ross Jerrard, formerly finance head, replacing Andrew Pardey as chief executive.
By George Collard; [email protected]
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