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AngloGold purchases Egypt’s largest gold mine

 
 AngloGold purchases Egypt’s largest gold mine (photo credit: PR)
AngloGold purchases Egypt’s largest gold mine
(photo credit: PR)

AngloGold purchases Centamin at a 36% premium in a $2.5 billion deal announced Tuesday

The owner of Egypt’s largest gold mine, Centamin, has been purchased by AngloGold Ashanti in a $2.5 billion deal, the companies announced Tuesday.

As gold nears its all-time highs and continues to hold just over $2,500 an ounce, AngloGold made the deal agreeing to pay 163 pence per share, a 36.7% premium over Monday’s closing price of 148 pence.

Centamin shares rose 24% in trading early Tuesday on the London Stock Exchange, adding to 12-month gains of 39% already realized prior to the sale.

 Shares of Centamin rose 24% Tuesday on the London Stock Exchange after AngloGold announced its purchase of the company at a cost of 163 pence per share. (Source: Marketwatch) (credit: PR)
Shares of Centamin rose 24% Tuesday on the London Stock Exchange after AngloGold announced its purchase of the company at a cost of 163 pence per share. (Source: Marketwatch) (credit: PR)

AngloGold announced the acquisition would boost production by about 450,000 ounces per year after the company takes control of the Sukari Gold Mine in Egypt. AngloGold estimated an all-in sustaining cost of $1,196 an ounce for its gold production this year.

“This transaction is an endorsement of Centamin’s achievement in reestablishing Sukari as a world-class operation and occurs as the Egyptian government has taken important steps to attact foreign investment to develop the country’s significant geological potential,” Centamin chair James Rutherford said.

Under the terms of the deal, Centamin shareholders will receive 0.06983 new AngloGold shares for each Centamin share and $0.125 in cash, Reuters reported.

AngloGold, listed on the New York Stock Exchange, shares dropped about 6% in premarking trading Tuesday.

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

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