AngloGold’s mid-size miner pounce may set a trend
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Karen Kwok
LONDON, Sept 10 (Reuters Breakingviews) -The US-listed group is paying $2.5 bln for Egypt-focused rival Centamin. High gold prices make it easier for bigger fish to bulk up via share-based deals. Rising production costs and future price volatility suggest more relative minnows could say yes to an adequate premium.
Full view will be published shortly.
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CONTEXT NEWS
AngloGold Ashanti will buy Egypt-focused smaller rival Centamin in a $2.5 billion stock and cash deal, the companies said on Sept. 10.
Under the terms of the deal, Centamin shareholders will receive 0.06983 new AngloGold shares for each Centamin share and $0.125 a share in cash.
The implied 163 pence ($2.14) per share offer represents a premium of 36.7% to Centamin's Sept. 9 closing price of 120 pence, the companies said in a statement.
Shares in Centamin jumped about 25% to 149 pence as of 0958 GMT on Sept. 10.
Editing by George Hay and Streisand Neto
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