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La Mancha Holdings announced the closing of a 200-million Canadian dollar ($159 million) subscription to the shares of Endeavour Mining Corporation (Endeavour) on March 30. La Mancha Holdings is a gold producer owned by the Egyptian Sawiris family.
With the newly completed subscription, La Mancha received 8,910,592 common shares of Endeavour, at a unit price of around 29.361 Canadian dollars ($23.34) per share, according to a corporate press release.
“We are extremely pleased with the progress that Endeavour’s management has made over recent years to create a leading global gold producer; one which is now diversified across seven assets and is the largest producer in what I believe to be the world’s most prospective gold-mining region,” Naguib Sawiris, the billionaire chairman of the board at La Mancha, said. “We remain long-term supporters of Endeavour, as we are thoroughly convinced that the combination of Endeavour’s fantastic assets portfolio, strong balance sheet and proven management ideally positions the company to deliver an uncompromising mix of strong cash-flows, returns to shareholders and organic growth.”
The latest acquisition further increases the Sawiris family’s stake in Endeavour, while boosting its production capacity in its various mines. As of 2019, La Mancha was the leading shareholder in Endeavour, with a 30-percent stake, Reuters reported.
Teranga Gold acquisition
In November 2020, Endeavor acquired Teranga Gold for 2 billion Canadian dollars ($1.9 billion) in an all-share deal making it one of the world’s top 10 gold producers, Financial Times reported.
The acquisition positioned Endeavour as West Africa’s leading gold producer, with an annual production capacity of about 1.5 million ounces.
Existing Endeavour shareholders received a 66-percent stake in the combined entity, while Teranga shareholders held the remaining 34 percent, leaving them with a 7-to-3 ratio of seats on the board.
As the Canada-based miner makes a move to list on the London Stock Exchange 2021, its Teranga acquisition could pave the way to entering the FTSE 100 index. Listing on FTSE would grow its pool of investors and strengthen its market operations.
La Mancha is 100-percent owned by the Sawiris family, with investments in telecom, mining, media and real estate.
