Wednesday 18 December 2019 3:37 pm

Centamin says Endeavour is stalling in mining merger talks

Canadian mining corporation Endeavour is refusing to share vital information regarding its value with takeover target Centamin unless it is given an extension to a deadline for making an offer.

A statement from London-listed Centamin said that despite an agreement to exchange due diligence information, “Endeavour has now indicated that it will not provide the information that Centamin has requested unless and until Centamin agrees to an extension of the deadline.”

Read more: Centamin rejects £1.5bn buyout proposal from Endeavour

Under English takeover law, Endeavour has until 31 December to make a firm offer for the gold miner’s assets.

Centamin went on to say: “The unsolicited approach from Endeavour has created an intense period of uncertainty for all of the company’s stakeholders.

“Therefore, the board of Centamin believes that Endeavour should, without further delay, enter into substantive reciprocal due diligence.”

On Monday Endeavour announced that the two companies were assessing the feasibility of a merger, a move its target described as an “unsolicited proposal.”

At the beginning of the month Centamin’s board unanimously rejected an all-share offer worth £1.47bn from the Canadian firm.

The proposal offered a premium of 13 per cent for each of the Jersey-headquartered firm’s shares.

At the time the firm said the terms of Endeavour’s proposal provided comparatively greater benefit to Endeavour’s shareholders, and did not adequately reflect the contribution that Centamin would make to the merged entity.

It added it believed it is better positioned to deliver shareholder returns than the combined entity.

Endeavour has been trying to engage with the firm since October 2018, when its initial overtures were rejected within 24 hours.

Company chairman Michael Beckett said that it had become “necessary to make public our proposal so that the voices of shareholders are heard.”

Read more: Centamin shares fall down mine shaft on poor annual results

Shares in Centamin rose nearly two per cent today. The stock surged 15 per cent when Endeavour initially revealed the proposal.

Endeavour have not responded to a request for comment from City A.M.

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