CAMEC telegraphing bid for Katanga

Central African Mining & Exploration (CFM-L) has sent word to Katanga Mining (KAT-T) that it intends to make an all-share bid for Katanga.

Its “indicative” bid is 15 shares for one Katanga share, working out to about $21 per share for Katanga. That would value the company at $1.6 billion.

Central African already holds about 22% of Katanga, which it acquired through purchases from other large shareholders, paying for the Katanga shares in its own shares.