South African AngloGold Ashanti will acquire Centamin PLC, the operator of Egypt’s largest gold mine Sukari, in a $2.5 billion stock and cash deal, Reuters reported, citing both companies.
The transaction, set to enhance AngloGold's presence in Africa, involves Centamin shareholders receiving 0.06983 new AngloGold shares and $0.125 in cash for each Centamin share.
This indicates an offer price of 163 pence ($2.14) per share, representing a 36.7% premium over Centamin's previous closing price.
The acquisition is part of a broader trend in the gold mining sector, following recent significant deals such as Newmont’s $16.8 billion acquisition of Newcrest Mining in late 2023 and BHP Group’s exist from $49 billion bid to take over Anglo American.
Once the acquisition is complete, AngloGold shareholders are expected to hold about 83.6% of the company’s enlarged issued share capital, with Centamin shareholders holding around 16.4%.
AngloGold anticipates the deal to enhance free cash flow per share in the first full year post-acquisition.
The acquisition includes Centamin's Sukari gold mine, Egypt's largest and one of the world's top gold producers, which will boost AngloGold’s annual production to over 3 million ounces, positioning it as the fourth largest gold producer by volume globally.
The deal also expands AngloGold’s operations to a new key gold-producing region, complementing its existing assets in nine countries.
