Endeavour to buy Teranga as gold dealmaking gathers pace

Endeavour to buy Teranga as gold dealmaking gathers pace

West Africa-focused Endeavour Mining EDV.TO has agreed to buy Teranga Gold TGZ.TO in an all-share deal that will create a top 10 gold producer aiming to list in London, the companies said on Monday, a week after announcing they were in talks.

Endeavour shareholders will end up with 66% of the combined entity, with Teranga shareholders holding the remaining 34%. Teranga will get three seats on the board to Endeavour's seven.

Endeavour will pay 0.470 of its own shares for each Teranga share, a 5.1% premium based on Friday's closing prices.

With investors jittery about pricey takeover deals amid a surge in gold prices, Endeavour's shares fell after the two announced they were in talks.

"Teranga had a very strong run over the past 12 months, so we're