Both parties from Endeavour Mining and Centamin (LON: CEY) have hit news headlines over the last couple weeks, a potential merger deal flirted with headlines.
Centamin have seen a mixed time of financial 2019, and the firm has been confident throughout the year. In October, the FTSE250 listed firm saw its shares dip after the firm saw its output levels decline.
Centamin first saw the approach from Endeavor hit their desks on the 3rd December, where Centamin saw their shares spike on the news.
On December 3, Centamin said that they had rejected the hostile approach from Endeavour Mining.
Centamin PLC on Tuesday said the combination proposal made by Canadian peer Endeavour Mining Corp would provide greater benefit to Endeavour’s shareholders than to its own shareholders and does not reflect the contribution that would made by Centamin to the merged entity.
In a response to the £1.47 billion, all share combination proposal, Centamin said that it is ‘better positioned’ to deliver shareholder returns on a stand alone basis than a combined entity, leading to a unanimous board rejection.
The following day, Centamin gave the market another update on the rejection of the deal.
Centamin said the offer “materially undervalues” the company and it is “better positioned” to deliver shareholder returns on its own rather than teaming up with Endeavour.
In the statement the company Chair Josef El-Raghy said: “The board strongly believes that Endeavour’s proposal significantly increases financial and operating risk without any material benefits to our shareholders. Centamin’s stated strategy has always been to maximise returns for all of its shareholders, having returned approximately USD500 million to shareholders since 2014. In addition, despite numerous requests, Endeavour has refused to enter into a customary non-disclosure agreement to allow the board to further assess the proposal.
Once again, the FTSE250 listed firm pledged to shareholders that they would look to turn business fortunes around and on Friday announced the appointment of a new interim CEO.
Centamin announced the appointment of Jim Rutherford as a non executive director. He currently works at FTSE100 listed Anglo American plc where is a non-executive director.
Today, Endeavour have said that they have made progress with Centamin ahead of the offer deadline.
The merger values Centamin at around £1.47 billion, and Endeavour noted it has made several unsuccessful attempts at engaging with Centamin’s board.
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 stressed it will not make an offer before the December 31 deadline without the recommendation of the Centamin board.
Shares in Centamin trade at 121p (+1.8%). 16/12/19 11:03BST.