AngloGold Ashanti is set to acquire all shares in Centamin, which owns the Sukari gold mine, in Egypt, one of the world’s largest producing mines.
Sukari produced more than 5.9 million ounces (oz) of gold since production began in 2009.
The transaction will see Centamin shareholders hold 16.4% of AngloGold’s enlarged issued share capital.
The offer implies that Centamin’s share capital is valued at about £1.9 billion, or $2.5 billion.
"Today's transaction is highly compelling and builds on the strong foundation we have built. It adds to our portfolio as the preeminent gold producer in Egypt and offers enormous geological potential that we are very well placed to develop," said AngloGold chairperson Jochen Tilk.
AngloGold chief executive Alberto Calderon said the transaction will add a Tier 1 asset to their portfolio. “The transaction is free cash flow accretive in the first full year of production and net asset value accretive from day one,” he said.
“We will build on the good work by the Centamin team to realise the significant upside in Centamin.”
The acquisition is set to increase AngloGold Ashanti’s yearly gold production by about 450,000 oz to more than three million ounces while reducing combined total cash costs and all-in-sustaining costs (AISC).
Mathew Nyaungwa, Editor in Chief, Rough&Polished
