Ashanti to buy Centamin for US$2,5 billion

AngloGold Ashanti will buy Egypt-focused smaller rival Centamin in a US$2,5 billion stock and cash deal, the companies said yesterday, as the US-listed global miner expands its operations in Africa.

Shares in Centamin jumped about 24 percent to 148,10 pence in early trade, their highest level since October 2020. Shares in Centamin’s London-listed peer Hochschild rose about 4 percent.

Under the terms of the deal, Centamin shareholders will receive 0,06983 new AngloGold shares for each Centamin share and US$0,125 in cash.

The implied 163 pence (US$2,14) per share offer represents a premium of 36,7 percent to Centamin’s Monday closing price of 120 pence, the companies said in a statement.

The acquisition coincides with a flurry of deal activity in the gold mining sector over the past couple of years, with the world’s top gold producer Newmont buying Australia’s Newcrest Mining for US$16,8 billion in late 2023.

In May, miner BHP Group walked away from its US$49 billion plan to take over rival Anglo American after its last-ditch request for more time was rejected by the London-listed firm, ending its six-week pursuit for now.

Following the completion of the Centamin deal, it is expected that AngloGold shareholders will own about 83,6 percent and Centamin shareholders about 16,4 percent of AngloGold Ashanti’s enlarged issued share capital. — Reuters.