An investment firm managed by Egyptian multi-billionaire Naguib Sawiris called Weather II has launched a $500 million takeover bid for La Mancha Resources (LMA-T) at $3.50 per share in cash—a 56% premium to the junior’s closing share price on July 12 and a 43.1% premium to La Mancha’s 20-day volume-weighted average price.
Nearly 8 million shares of La Mancha changed hands after news of the takeover offer was announced in a company press release on July 13 and the stock jumped 52% or $1.18 to close at $3.43. Another 5 million shares traded hands today with La Mancha closing down a penny at $3.42 per share within a 52-week range of $2.05-$4.03.
La Mancha’s board of directors has unanimously agreed to recommend the offer to shareholders. The company said it agreed to put itself up for sale following a request by majority shareholder Cie. Francaise de Mines et Metaux, part of the Areva nuclear company. The French company has agreed to tender its 63% stake to Weather II.
In a prepared statement Sawiris said the acquisition represented an “extremely attractive opportunity with a geographically diverse portfolio of assets offering exposure to growth and development-stage projects.”
Sawiris is the son of Onsi Sawiris, the founder of Egypt’s Orascom Group—one of the largest employers in the country. Sawiris joined Orascom in 1979 and helped build its information technology and telecommunications divisions. He founded Weather Investments in 2005 and estimates of his personal fortune range between US$2.5 billion and US$3.1 billion.
The Sawaris family has interests spanning telecommunications, construction, fertilizer, cement and real estate.
La Mancha operates the Hassai mine in Sudan, which has been in operation since 1992; the Ity mine in Cote d’Ivoire, which has been a steady producer since 1991; its 51%-owned and operated Frog’s Leg underground mine in Western Australia; and its 100%-owned White Foil mine 2 km away from Frog’s Leg, which went into production in early 2010.
In terms of exploration it has projects in all three countries but most notably in Sudan where it is exploring the Hassai VMS project—a mining complex of over 12 open-pit mines that were mined over the last twenty years, and its 70%-owned Nuba Mountain project about 400 km southeast of Khartoum at the northeastern edge of the Nuba Mountains.
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