Centamin rejects offer, says Endeavour shareholders stand to gain more from takeover

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Centamin rejected a takeover proposal from Endeavour, saying it was skewed in favour of latter's shareholders and fundamentally undervalued the company.

The company flagged a number of reasons for rejecting the proposal, including the stake its shareholders would receive in the enlarged company. The offer was based on an exchange ratio of 0.0846 Endeavour shares for each Centamin share.

'Endeavour's proposal would result in Centamin's shareholders exchanging 100% direct exposure to a world-class gold asset for a reduced 47% exposure to the same asset within a broader portfolio of lower quality, higher risk assets,' the company said.

Centamin said its shareholders would own only 47% of the enlarged group, but the company would contribute the bulk of growth, including 100% of first half of 2019 free cash flow, 100% of H1 2019 dividend distribution, 100% of 2018 dividend distribution, 57% of measured and indicated resources and 69% of Inferred resources.

At 9:54am: (LON:CEY) Centamin PLC share price was -0.75p at 128.05p