(Bloomberg) — Endeavour Mining Corp., the acquisitive gold producer backed by Egyptian billionaire Naguib Sawiris, is in talks about a potential combination with Teranga Gold Corp. as it seeks to build scale.
The miner is discussing a “merger of equals style” deal with Teranga, it said in a statement Tuesday, confirming an earlier Bloomberg News report.
It is considering an all-stock purchase and may offer a low premium for Toronto-listed Teranga, people with knowledge of the matter said earlier. Teranga confirmed the talks in a separate statement.
Endeavour aims to reach a friendly agreement, one of the people said, asking not to be identified because the information is private. The company will only pursue a transaction that represents a “compelling value creation opportunity” for shareholders, according to Tuesday’s statement.
Teranga shares jumped as much as 13% at 9:30 a.m. Tuesday in Toronto. Gold producers are benefiting from a rebound in the price of the metal, which hit a record high in recent months.
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