West Africa-focused Endeavour Mining has agreed to buy Teranga Gold in an all-share deal to create a top 10 gold producer which will list in London, the companies said on Monday, a week after they announced they were in talks. The agreement is a breakthrough for the fragmented gold sector and for Endeavour, whose previous attempt at a major merger failed. But with investors jittery about pricey takeover deals after a surge in gold prices, Endeavour’s shares fell 2.4 percent to $23, while Teranga Gold – which climbed after the talks were announced last week – fell 1.1 percent. Endeavour will pay 0.470 of its own shares for each Teranga share, a 5.1 percent premium based on Friday’s closing prices – valuing Teranga, whose shares are up 97 percent this year, at $1.99bn. Endeavour shareholders will get 66 percent of the combined entity, leaving Teranga shareholders with the remaining 34 percent. Teranga will get three seats on the board to Endeavour’s seven. The enlarged Endeavour would seek to list in London in 2021. As the largest premium pure gold producer in that market, it would eventually aim for entry into the FTSE 100 index, thereby increasing the pool of investors and luring more generalists. For the London market, a listing would plug a gap left by Randgold’s departure following its merger with Barrick completed at the start of 2019.
SOURCE: AL JAZEERA
More Stories
Trends for African Students Seeking Education Abroad
Floods and Landslides Batter Madagascar
Anyone Interested in East Africa’s Dynamic Urbanisation Process should have this Book
Filling the Gap in Locally Grown Techpreneurs
South Africa has Signed an Agreement to Reintroduce Dozens of Cheetahs in India
Enhancing Trust and Security in Digital Africa
Energy Giant Eni Signed an $8 billion Gas Deal with Libya’s State-run National Oil Corporation
Expectations of the Pope’s Visit to Africa
The First Muslim to Helm South Africa’s Biggest Metropolis
The First Africa Vegan Restaurant Week
Lagos Rising: Meet the African Designers Who are Ushering in a New Guard of Fashion
My Life in Food: Idris Elba on African Cuisine and Cooking with his Mum