Endeavour Mining Corporation and SEMAFO Inc. have entered into a definitive agreement whereby Endeavour will acquire all of the issued and outstanding securities of SEMAFO through a Plan of Arrangement under the Business Corporations Act (Québec). The Transaction will create a top 15 global gold producer and the largest in West Africa with six operations and an attractive growth pipeline.
Due to the strong strategic rationale for local consolidation, both sets of Board of Directors have unanimously approved the Transaction.
Michael Beckett, Chairman of Endeavour said the agreement will create one of the leading gold companies, with the largest portfolio of operating assets located entirely in West Africa.
“In addition to being immediately accretive on all key metrics, this transaction will enhance our scale as well as providing improved trading liquidity, greater asset diversification and a reduced risk profile for all shareholders.”
Sébastien de Montessus, President & CEO of Endeavour said the move offers a rare opportunity to bring together two leading West African mine operators with a shared strategic vision, complementary assets, and management teams with a proven track record.
“We believe this transaction represents a compelling value equation for both sets of shareholders with the potential for a meaningful re-rating, whilst providing increased asset diversification and enhancing our ability to manage risks within the business.”
The combined company is expected to produce more than 1 million ounces of gold annually, supported by a robust pipeline of development projects and a significantly enhanced exploration portfolio focused on the highly prospective Birimian Greenstone Belt.
Mr de Montessus said with both companies having recently completed build-out phases and mine ramp-ups, the combined business is well positioned for a sustained period of strong cash flows.
“Our enhanced capital markets profile should provide added trading liquidity, free float and size, characteristics that investors are seeking in today’s market environment, and we will continue to allocate capital in a disciplined and efficient manner with a focus on maximizing shareholder returns.”
Benoit Desormeaux, President and CEO of SEMAFO said the transaction has received strong support from key shareholders who recognise it as an exciting value creating opportunity to bring together two companies with common values and shared cultures.
“For our shareholders, this transaction offers the benefits of both an upfront premium and a significant re-rating opportunity within a stronger merged company.”