16 Jan Endeavour Mining abandons $1.9 billion Centamin takeover bid
Canada’s Endeavour Mining has dropped its plan to acquire Egypt-focused Centamin for US$1.9 billion as it did not get enough information on the latter’s assets during an assessment.
Centamin’s sole operating asset is the Sukari Gold Mine, located in the Eastern Desert approximately 700 km from Cairo, although the firm is also advancing the Cleopatra project in Egypt and exploration projects in West Africa.
London and Toronto-listed Centamin rejected Endeavour’s takeover proposal in December on the premise that the bid failed to offer enough value to the company’s shareholders. Following this, Endeavour was given an extension to make a formal offer by January 14.
However, Endeavour CEO Sebastien de Montessus said: “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.”
The CEO went on to say that Endeavour remain convinced of the strategic rationale of combining the two gold producers to create a diversified company with a high quality portfolio of African assets.
Last week, Centamin announced a 51% rise in gold production at the Sukari mining in the final quarter of 2019.