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Centamin tweaks board after rejecting takeover approach

Analysts at RBC said: "We hope that a fresh perspective could help encourage CEY’s board to engage with Endeavour around the recent potential for an all-share offer" 

Centamin PLC -

Centamin PLC (LON:CEY) has tweaked its board after recently rejecting a takeover bid, appointing an interim chief executive and a new deputy chairman.

The Egyptian gold miner, which last week rebuffed an approach by Canada’s Endeavour Mining, has promoted chief financial officer Ross Jerrard to interim chief executive.

READ: Centamin management unanimously rejects takeover approach from Endeavour Mining

After CEO Andrew Pardey gave notice of his retirement in October, the FTSE 250-listed company said he was now stepping down with immediate effect and that candidates to replacement him on a permanent basis were being interviewed.

Endeavour has a 31 December deadline to make a firm offer or walk away.

In parallel, mining sector investment veteran Jim Rutherford has been appointed as non-executive deputy chairman with the intention for him to take over from founder Josef El-Raghy as chairman by the end of next year.

Rutherford brings “considerable financial and capital markets insight and a deep understanding of the mining industry”, Centamin said, having been a non-exec at Anglo American and before that a 16-year stint at mining-focused investment manager Capital Group and as mining equity research analyst at HSBC James Capel.

Expressing the delight that is customary in such announcements, El-Raghy said of his appointed heir: “His appointment comes after an extensive search, and with his considerable understanding and knowledge of the resource sector obtained during his analytical and fund management and more recent board career, we are delighted that someone of his calibre and experience is joining the board.”

Rutherford is currently also a NED at Anglo Pacific Group PLC (LON:) and was chairman of AIM- and TSX-listed Dalradian Resources until it was taken private last year.

El-Raghy said appointing an interim CEO also gave the company “clear leadership during this period of transition”.

Shares in Centamin rose 1% to 122.75p on Friday morning.

Analysts at RBC Capital Markets said: "We hope that a fresh perspective could help encourage CEY’s board to engage with Endeavour around the recent potential for an all-share offer for CEY." 

Analysts said they "would not normally comment on board changes but think given the current situation at CEY and the recent approach by Endeavour Mining that today’s news warrants attention", adding that Rutherford is "a highly respected executive who brings significant capital markets and mining executive experience".

 

Quick facts: Centamin PLC

Price: 211.8 GBX

LSE:CEY
Market: LSE
Market Cap: £2.45 billion
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