Cairo – Mubasher: The gold producer Endeavour Mining Corp, backed by the Egyptian billionaire Naguib Sawiris, agreed to acquire Teranga Gold Corp in a $1.86 billion deal, Bloomberg reported on Monday.
The annual production of the combined company is expected at about 1.5 million ounces of gold across West Africa. This would make it one of the 10 biggest gold producers.
The company will be listed on the London Stock Exchange (LSE).
“The combined entity will become a new senior gold producer and enjoy an improved capital markets profile, underpinned by a healthy balance sheet and strong cash flow capabilities to support a sustainable dividend,” Endeavour’s CEO, Sebastien de Montessus, said.
La Mancha, the vehicle which Sawiris owns his stake in Endeavour, is planning to inject an additional amount of $200 million into the combined company, raising its stake to 19%.
The deal is projected to be complete in the first quarter (Q1) of 2021.
