Goldsmith Endeavor wants to merge with Centamin
Gold miner Endeavor aims for a merger with industry colleague Centamin. The proposed share deal between the mining companies would have a value of 1.9 billion dollars. Efforts to get the Centamin board involved in the plans appear to be fruitless for the time being.
Endeavor has made a proposal whereby Centamin shareholders are promised a premium of 5 percent. Endeavor would receive 53 percent of the merged company in the proposed plans.
The companies would together have a better geographical spread and better diversification, according to Endeavor, which is forced to collaborate by recent mega deals in the sector. Better access to capital as a merger company could also benefit shareholders. Joining forces could, according to Endeavor, work out favorably for dividend payments.
It is not the first time that Endeavor is trying to merge. A previous attempt to collaborate with Acacia Mining failed.