AngloGold Ashanti Limited (AGD.L, AU), a South African Gold miner, said on Tuesday that it has agreed to buy Centamin Plc (CELTF.PK, CEY.L, CEE.TO).
Under the terms, for each Centamin share, shareholders will receive 0.06983 new AngloGold Ashanti share and cash of $0.125.
The offer values Centamin at around 1.9 billion pounds or $2.5 billion.
"The acquisition of Centamin is a compelling strategic fit, closely aligned with AngloGold Ashanti's core competencies," AngloGold said.
The deal values each Centamin share at 163 pence based on the closing price of $28.80 per AngloGold Ashanti share, and a British pound and dollar exchange rate of £1:$1.3080 on September 9.
This represents 36.7 percent to the closing price of 120 pence per Centamin share and a 37.6 percent to the 30-day volume-weighted average Centamin share price as of September 9, based on the 30-day volume-weighted average share price of AngloGold Ashanti as at the same date.
Post-transaction, AngloGold Ashanti will own around 83.6 percent, while Centamin will own approximately 16.4 percent of AngloGold Ashanti.
The transaction is expected to be closed in the fourth-quarter of 2024.
Centamin is a Gold producer, whose flagship Tier 1 asset is the Sukari Gold mine, which is Egypt's largest and first modern Gold mine.
Since production began in 2009, Sukari has produced over 5.9 million ounces of Gold.
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