Mega-gold-miner AngloGold Ashanti has sealed the deal on acquiring Centamin, in a US$2.5B deal – which topped S&P’s M&A deals of the week.
AngloGold announced the acquisition as a significant milestone in its strategic journey, highlighting the company’s progress over the past 2.5 years at a conference.
The acquisition of Centamin Sukari assets marks a transformative step for AngloGold Ashanti, stated Alberto Calderon Zuleta, CEO & executive director, providing an immediate boost in production and improvements in both cash cost and all-in sustaining cost.
Alberto goes on to explain that the full asset potential programme has already delivered incremental EBITDA benefits of US$464M over the past two years. AngloGold Ashanti’s existing corporate infrastructure is well-equipped to integrate Centamin’s assets, leveraging the company’s global scale for procurement and supply chain benefits.
He states that while specific synergy numbers are not yet publicly committed, the company is optimistic about the potential opportunities. The acquisition also leverages AngloGold Ashanti’s proven exploration expertise and operating credentials, particularly in Africa.
The Sukari team has made notable operating improvements in recent years, fostering a strong partnership with the Egyptian government, which Anglogold is committed to maintaining and nurturing this relationship.
The acquisition has received unanimous recommendations from both AngloGold Ashanti and Centamin’s boards. Initial discussions with the Egyptian government have been positive, emphasizing AngloGold Ashanti’s commitment to Egypt and maintaining Centamin’s good working relationship with the government.
The offer values Centamin at £1.9B (US$2.5B), implying a premium of 36.7% based on the previous day’s closing share prices and exchange rates. Upon completion, Centamin shareholders will own approximately 16.4% of the combined group. AngloGold Ashanti plans to maintain its current dividend policy and existing delisting structure post-acquisition.
