RE:Hostile $2.52B bid for CentaminWell, there's an interesting development. A few aspects of this proposition strike me:
- Considering that our largest shareholder is Egyptian, I wonder how long he's had an eye on this asset? I guess his influence in that country wouldn't do the combined entity any harm.
- If this goes through, it immediately brings the London listing I've been prophecying.
- CEY currently pays a chunky dividend. Can't see the deal going through without a promise that the combined entity will have a progressive dividend policy. As CEY brings US$289m of cash and no debt, that should become possible as the combined entity's net debt will be modest (~$300m - a level I'd be happy to maintain) and it will generate significant positive cashflow
- CEY's last reported AISC was $1,141/oz for Q3, so there's work to be done to get that down, but anticipates $890-$950/oz for the FY.
Food for thought. Wonder what the market will make of it? CEY up 10% in London.
Cheers,
Mark