Comment: Endeavour's bid for Centamin is no Egyptian curse for investorsComments Off on Comment: Endeavour's bid for Centamin is no Egyptian curse for investors
TWO Egyptian powerbrokers started a scrap on London soil today. Naguib Sawiris, telecoms tycoon-turned mining investor, and goldminer Josef El-Raghy are squaring up over the Sawiris-backed miner Endeavour’s bid for Centamin, owner of the ancient mine developed by Josef’s father Sami in the 1980s.
Endeavour’s all-share offer is cheap and opportunistic. It comes at a time of weakness for Centamin after three profit warnings and the exit of its CEO.
But it does have logic to it. Part of Centamin’s problem is that it’s a single mine, an all-or-nothing bet on one hole in the ground. If something goes wrong in that one site — as it has this year — it hurts.
Endeavour, meanwhile, has a collection of mines, but none come close in quality to El-Raghy’s.
There’s a deal to be done here.Centamin needs balance from a wider portfolio, but deserves a far higher share of the combined business than Endeavour is offering. A premium of 5% over the past month’s average share price is insulting.
But Centamin is not serving its shareholders well by refusing even to engage. El-Raghy should pick up the phone and negotiate a better deal.
Row back on BT pay row
Surprised at the lack of angst from BT chief Philip Jansen over efforts to cap his bonus? Don’t be. This is the guy who made £100 million turning Worldpay into an £8 billion business. Jansen’s not at BT for the money. He’s there because he thinks he can turn around the creaking leviathan and he may just be right. Investors are lucky to have him. Don’t let this row get out of hand.