Gold miner Endeavour Mining Corp. to acquire Semafo Inc. in all-stock deal
Posted March 23, 2020 8:31 am.
Last Updated March 23, 2020 8:46 am.
This article is more than 5 years old.
MONTREAL — Endeavour Mining Corp. has signed an agreement to acquire Semafo Inc. in a deal worth about $1 billion.
The companies say the transaction will create a gold producer with six operations and more than one million ounces of gold production in 2020.
Under the deal, Semafo shareholders will receive 0.1422 of an Endeavour share for each Semafo share they hold. Existing Endeavour and Semafo shareholders will own approximately 70 per cent and 30 per cent, respectively, of the combined company.
La Mancha Holding, which holds a 31 per cent stake in Endeavour, has also agreed to invest $100 million in the combined company.
Its interest is expected to slip to about 25 per cent once the deal is completed.
The agreement requires approval by a simple majority of the votes cast by Endeavour shareholders and a two-thirds majority vote by Semafo shareholders.
This report by The Canadian Press was first published March 23, 2020.
Companies in this story: (TSX:EDV, TSX:SMF)
The Canadian Press
