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Endeavour: merger discussions with Centamin terminated

Kitco News

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(Kitco News) - Endeavour Mining Corp. (TSX: EDV) announced Tuesday that it has abandoned an offer for Centamin PLC and that merger discussions have been terminated.

Endeavour said the decision was made after officials were informed by Centamin that the latter does not intend to seek an extension to a Jan. 14  “put up or shut up” (PUSU) deadline.

“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,” said Sebastien de Montessus, Endeavour’s chief executive officer.

Last month, Endeavour offered Centamin $1.9 billion. At the time, Centamin reportedly said the offer undervalued the company.
Centamin's Sukari Mine is the only gold mine in Egypt. The life of mine is 20 years, and annual production is about 500,000 gold ounces. The company also has exploration projects in Cote d’Ivoire and Burkina Faso.

Montessus said Endeavour officials “remain convinced about the strategic rationale of combining Endeavour and Centamin to create a diversified gold producer with a high-quality portfolio of assets.”
Meanwhile, he continued,  Endeavour will be “disciplined” on business-development opportunities after “significant improvement in our business” over the past four years. He said Endeavour is poised to generate cash flow, as reflected by debt reduction of $52 million in the third quarter and $77 million in the fourth.

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