Canadian gold miner Endeavour abandons plans for a £1.5bn merger with FTSE 250-listed Centamin
Canadian gold miner Endeavour said it had received ‘insufficient’ information about Centamin’s books before a deadline last night
Canadian gold miner Endeavour has abandoned plans for a £1.5billion merger with FTSE 250-listed Centamin.
Endeavour said it had received ‘insufficient’ information about Centamin’s books before a deadline last night.
Endeavour had been hoping Centamin would extend the deadline – which meant it had to put in a firm offer or walk away – but when this was rejected it decided to abandon the tie-up.
The two companies began talks in December to strike a better deal after Centamin rebuffed an initial £1.5billion bid, which would have seen its investors receive Endeavour shares.
Centamin, which is now hoping to bolster production in Egypt at its main mine, insists there were ‘comprehensive’ negotiations but its board was not convinced the deal would pay off for shareholders.
It tried to sweeten the collapse by paying out £89million to shareholders in a dividend, but its share price dropped by 7 per cent, or 8.85p, to 118.35p.