Globe says Endeavour in $2.4B deal to buy Teranga Gold

2020-11-17 08:38 ET - In the News

See In the News (C-EDV) Endeavour Mining Corp

The Globe and Mail reports in its Tuesday, Nov. 17, edition that Endeavour Mining is buying Teranga Gold in an all-stock transaction worth about $2.44-billion. The Globe's Niall McGee writes that Endeavour is paying 0.470 of its shares for each Teranga share, a 5.1-per-cent premium to Teranga's closing share price last Friday. Endeavour's biggest shareholder, Egyptian billionaire Naguib Sawiris, has pledged to invest an additional $200-million into the combined company to strengthen the balance sheet as part of the transaction. Endeavour has six mines in Burkina Faso and Cote d'Ivoire, while Teranga has two mines in Senegal and Burkina Faso. The transaction will see Endeavour distance itself from B2Gold and Kinross Gold as West Africa's biggest gold miner by production, with projected yearly output of 1.5 million ounces. Endeavour, which trades on the Toronto Stock Exchange, is planning to list the combined company in a secondary listing on the London Stock Exchange, and hopes to gain an inclusion in the FTSE 100, which would bring added demand through index purchases by mutual funds. Sentry manager Jon Case said the deal will result in significant savings. He said, "This makes great sense."

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