Centamin rejects $1.9 billion takeover bid from Endeavour Mining

London-listed gold miner Centamin has rejected a US$1.9 billion all-stock takeover bid from Endeavour Mining, saying it did not offer enough value to the company’s shareholders.

Endeavour, which owns four gold mines in West Africa, said its offer was a 13% premium on Centamin’s most recent closing price. However, the TSX-listed firm conceded that Centamin had rebuffed several negotiation attempts.

“The terms of the proposal provide comparatively greater benefit to Endeavour’s shareholders, do not adequately reflect the contribution that Centamin would make to the merged entity,” Centamin said.

Centamin’s only operating asset is the large-scale Sukari gold mine in Egypt, although it is also advancing the Cleopatra project in Egypt along with exploration projects in West Africa.

The takeover bid from Endeavour is the latest attempt at consolidation in the gold sector this year, with the combined entity notionally producing 1.2 million ounces of gold in 2019 at an all-in sustainable cost of $875 per ounce – making it one of the lowest cost miners in the world.

The Barrick-Randgold mega-merger late last year kicked off a flurry of mergers and acquisitions in the gold space, with the Newmont-Goldcorp tie-up following in January. More recently, acquisitions have been made by Kirkland Lake Gold and China’s Zijin Mining during the last two weeks.