- Write by:
-
Tuesday, March 24, 2020 - 11:33:47 AM
-
708 Visit
-
Print
Mining News Pro - Canada’s Endeavour Mining gave markets a welcome break from Covid-19-related news on Monday by announcing the acquisition of smaller rival Semafo in a C$1 billion ($691 million) deal.
According to Mining News Pro - The transaction, the company said, will create the biggest gold producer in Burkina Faso and Ivory Coast with production estimated at over 1 million ounces a year.
The West Africa-focused miner, owned by billionaire Egyptian Naguib Sawiris, said the merger would bring together six mines with strong cash flow into one portfolio, the opportunity to optimize assets and a growth pipeline.
Endeavour shareholders will own about 70% of the combined company, with Semafo shareholders holding the rest.
Under the deal, the target company’s shares will be exchanged at a ratio of 0.1422 Endeavour shares for each Semafo share, which represents a premium of 54.7% from the closing price of Endeavour and Semafo on March 20.
La Mancha Holding, which has a 31% stake in Endeavour, has agreed to invest $100 million in the combined company. Its interest, however, is expected to drop to roughly 25% once the transaction is completed.
Endeavour and Semafo have previously worked as industry partners and in early 2019 began a dialogue to evaluate the merits of a business combination, but were unable to reach a deal. Talks resumed earlier this year, the companies said.
Semafo’s shares have lost more than 50% of their value since early November, when a convoy of mine employees was attacked in eastern Burkina Faso, causing at least 37 deaths and halting operations at its Boungou mine.
The company had said it planned to restart operations at the mine in the fourth quarter.
Short Link:
https://www.miningnews.ir/En/News/506002
Mining News Pro - Endeavour Mining Plc has fired president and chief executive officer Sébastien de Montessus, citing ...
Mining News Pro - Endeavour Silver Corp’s founder, Director and Executive Chairman, Bradford Cooke has passed away in ...
Mining News Pro - Canada’s Eldorado Gold left 2022 production guidance of 460,000-490,000 ounces untouched, despite ...
Mining News Pro - Endeavour Mining announced on Monday the discovery of 3 million ounces of measured and indicated (M&I) ...
Mining News Pro - Canadian gold miners Agnico Eagle Mines and Kirkland Lake Gold announced on Tuesday they are combining ...
Mining News Pro - The vaccination of Chadormalu Mining Company’s staff and employees has begun for the main and ...
Mining News Pro - Seaborne coal has become a quiet winner among energy commodities, lacking the attention of ...
Mining News Pro - Canada’s Endeavour Mining (TSX: EDV), West Africa’s top gold producer, began trading in London on ...
Mining News Pro - Mining companies awarded blocks in Egypt’s Eastern Desert are set to start exploring for gold under a ...
No comments have been posted yet ...