09:39 AM EST, 12/03/2019 (MT Newswires) -- Shares of gold-mining company Centamin (CEY.L), jumped Tuesday after the firm disclosed a takeover bid from Canada's Endeavour Mining (EDV.TO) in a deal worth 1.47 billion pounds ($1.90 billion).

The "unsolicited" proposal for an all-share merger based on an exchange ratio of 0.0846 Endeavour shares for each Centamin stock implies a 5% premium based on a volume-weighted average price over 30 days to Nov. 22, according to a statement from Centamin, a low-cost producer with operations mainly focused in Egypt.

Centamin were 12% higher recently in London.

"After several unsuccessful attempts to engage with the board, initially in October 2018 and then again on Nov. 11, 2019, regarding the prospects for a merger, Endeavour then submitted a formal proposal to Centamin on Nov. 25, 2019," Endeavour said in a statement on Tuesday. "As meaningful engagement has still not been forthcoming, Endeavour is today announcing the terms set out in its proposal in an effort to encourage the board to engage in discussions."

Endeavour said Centamin's shareholders were currently "disadvantaged" by the Sukari mine in Egypt being managed within a single-asset portfolio, recent operational challenges, and an ongoing leadership transition. "There would be immediate potential benefits from integrating Sukari into a multi-asset portfolio that is managed with a long-term value focus," Endeavour said.

The Canadian firm said the addition of Sukari to its portfolio would result in geographic diversification with three flagship assets -- Hounde and Ity being the other two -- across three countries in Africa. It also sees "improved" operating efficiencies as well as an ability to realize "meaningful" synergies.

The Centamin board, however, said in its response to the acquisition offer that shareholders were "strongly" advised to take "no action."

It said the terms of the proposal provide "comparatively greater benefit to Endeavour's shareholders, do not adequately reflect the contribution that Centamin would make to the merged entity and that Centamin is better positioned to deliver shareholder returns than the combined entity."

Price: 125.00, Change: +12.80, Percent Change: +10.24