Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
Check out our straightforward definitions of common legal terms.
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Access our unrivalled global news content, business information and analytics solutions
Insurance, risk and compliance intelligence using big data, proprietary linking and advanced analytics.
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Endeavour Mining Corporation (Endeavour) is going for gold with an unsolicited all-share merger offer for FTSE 250 mining company Centamin plc.
The Toronto listed mining giant has been trying to engage in constructive discussions about a possible combination with Centamin since October 2018. However, Centamin has refused to engage fully in these discussions. After another proposed discussion between the boards was turned down in late November, Endeavour announced a possible offer proposing an exchange of 0.0846 Endeavour shares for each Centamin share. Endeavour has until 31 December to confirm whether it intends to make a firm offer.
Endeavour has argued that combining the firms would encourage diversification as the entities between them would have three flagship gold mines, allowing better management of the mines, improvement of operational efficiency, increased cash flow and strengthening of the balance sheet. The new entity would have the backing of La Mancha, an investment vehicle owned by the Egyptian Sawiri family which has invested $350 million (£260 million) in Endeavour since 2015 and which invests heavily in Egypt. Naguab Sawiri, the telecoms tycoon who has become a mining investor, has a 29.8% stake in the company and is driving the bid.
For Centamin, the £1.5 billion offer is not the golden opportunity Endeavour has made it out to be. It rejected the bid, urging shareholders to take no further action on the grounds that the merger undervalues the company and has a merger ratio which favours Endeavour shareholders. Chairman Josef El-Raghy stated ‘The Board strongly believes that Endeavour's proposal significantly increases financial and operating risk without any material benefits to our shareholders.’ On 4 December 2019 Centamin issued a more formal rejection of the bid in which it expanded on the reasons it originally gave.
Gold is often a safe haven for investors when other securities are falling in price, because its value does not change with other assets such as shares and bonds. Demand for the precious metal surged in the aftermath of the 2008/9 recession, and gold prices have been rising amid recent political and economic uncertainty from £839.5 to £983.2 per troy ounce in June 2016, reaching a peak of £1278.0 in September 2019.
There is evidence of increased consolidation in the gold sector. On 1 December 2019 Chinese state-backed company Zijin Mining agreed a $1 billion (£769 million) acquisition of Continental Gold, a company focused on mining in Columbia. On 25 November 2019 Kirkland Lake Gold had made an offer for its Canadian rival Detour Gold. However, investor sentiment is changing, evidenced by the price of gold falling consistently for the last three months to £1138.48 in early December 2019, and this transaction comes as the gold rush which had gripped the market seems to be coming to an end.
Market Tracker will continue to monitor this transaction as it develops.
Free trials are only available to individuals based in the UK
* denotes a required field
Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.
0330 161 1234