FTSE 250-listed gold mining company Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) has agreed to be taken over by South African large-cap miner AngloGold Ashanti (ASX:AGG) plc for a large premium.
AngloGold tabled a cash and equity offer that values each Centamin share at around 163p.
This represents a nearly 37% premium to yesterday’s closing price, valuing Centamin at £1.9 billion or US$2.5 billion.
In accepting the offer, the Centamin board called it a “compelling strategic fit” that closely aligns with AngloGold’s core competencies.
Following the acquisition, AngloGold will take control of Centamin’s flagship asset, the Sukari gold mine in Egypt.
Sukari is cited as Egypt's largest and first modern gold mine which has produced over 5.9 million ounces of gold since entering production in 2009.
“This transaction is an endorsement of Centamin's achievement in re-establishing Sukari as a world-class operation and occurs as the Egyptian Government has taken important steps to attract foreign investment to develop the country's significant geological potential,” said Centamin chair James Rutherford.
Martin Horgan, chief executive of Centamin, added: “The transaction will allow our assets to grow as part of AngloGold Ashanti (ASX:AGG)'s larger, diversified portfolio, benefitting from AngloGold Ashanti's track record of responsibly developing and operating large-scale open pit and underground mines in Africa in close partnership with the host governments and communities."