Endeavour Mining Corp. , the acquisitive gold producer backed by Egyptian billionaire Naguib Sawiris, agreed to buy Teranga Gold Corp. in the latest deal to reshape the sector.
After Barrick Gold Corp. and Newmont Corp. created behemoths two years ago that dwarf the rest of the industry, other gold miners are trying to consolidate to remain relevant to shareholders. Helped by record gold prices, that’s led to a flurry of deals across the sector as smaller producers beef up their scale.
Endeavour said last week it was discussing a “merger of equals style” deal with Teranga after the talks were first reported by Bloomberg News. Endeavour is offering a 5.1% premium to Teranga’s closing price on Friday, valuing its equity at C$2.44 billion ($1.86 billion), according to Bloomberg calculations.
Teranga rose 1.3% to C$14.02 at 10:25 a.m. in Toronto, while Endeavour fell 2% to C$30.32.The combined company will produce about 1.5 million […]
November 17, 2020 Published by StockMan