- La Mancha Group, owned by Egyptian billionaire Naguib Sawiris, has agreed to back the Endeavour-Teranga merger with a C$200 million investment
- Under the terms of the deal Endeavour will acquire each of Teranga’s shares in exchange for 0.47 of its own shares
- As such, existing shareholders in Endeavour and Teranga will hold 66 per cent and 34 per cent of the resulting company, respectively
- La Mancha, which currently holds a 24 per cent interest in Endeavour, will own 19 per cent of the resulting entity following the transaction
- Endeavour Mining is currently down 2.94 per cent to $30.03 per share while Teranga Gold is is steady at $13.84 per share, as of 10:30am EST
La Mancha Group, owned by Egyptian billionaire Naguib Sawiris, has agreed to back the Endeavour-Teranga merger with a C$200 million investment.
Rumours surfaced early last week regarding the business combination, which have now been confirmed by both Endeavour Mining and Teranga Gold.
Under the terms of the agreement, Teranga’s shares will be exchanged at a ratio of 0.47 Endeavour shares for each one Teranga share. As such, existing shareholders in Endeavour and Teranga will hold a 66 per cent and 34 per cent stake in the resulting entity, respectively.
The ratio represents a 5.1 per cent premium based on the two companies’ closing share price on November 13, 2020.
“This combination offers an attractive opportunity to both sets of shareholders,” said Sébastien de Montessus, President and CEO of Endeavour.
“By combining our complementary assets, we will enhance our strategic position on West Africa’s highly prospective Birimian Greenstone Belt and we will have the ability to deliver material synergies,” he added.
The placement with La Mancha is expected to occur after the completion of the merger, at a U.S.-dollar price equal to a five per cent discount to Endeavour’s five-day volume weighted average share price on November 23, 2020.
The gold mining holding company, which currently holds a 24 per cent stake in Endeavour, will have a 19 per cent ownership in the post-merger entity upon completion of the placement.
Naguib Sawiris, Chairman of the Board of Managers of La Mancha and one of Africa’s richest people, abstained from voting as a director of Endeavour on the $200 million investment.
Endeavour Mining is currently down 2.94 per cent to $30.03 per share while Teranga Gold is is steady at $13.84 per share, as of 10:30am EST.