Egypt’s Sawiris buys Canadian gold miner for $500m

Egypt's second richest man buys French nuclear firm's stake in La Mancha Resources, it is confirmed
Egypt’s Sawiris buys Canadian gold miner for $500m
Sawiris, founder of Orascom Telecom Holding, has a net worth of around US$3.1bn and is ranked as the second richest man in Egypt.
By Shane McGinley
Sun 15 Jul 2012 10:23 AM

Egyptian businessman Naguib Sawiris, the Arab country's second richest man, has bought a stake in Canadian gold producer La Mancha Resources as part of a CAD$500m (US$493m) deal, it was confirmed at the weekend.

Sawiris, founder of Orascom Telecom Holding, has a net worth of around US$3.1bn.

On Friday, it was announced he had bought French nuclear reactor maker Areva’s stake in the gold mining firm through his company Weather II Investments.

"The company represents an extremely attractive opportunity with a geographically diverse portfolio of assets offering exposure to growth and development stage projects," Sawiris said in a statement.

Weather II has agreed to buy La Mancha at a price of CAD$3.50 (US$3.45) per share in cash, a premium of 55.6 percent to the closing price on July 12 and 43.1 percent to the 20-day volume weighted average price.

"The sale will contribute to further reduce Areva's net debt and helps to finance the group's strategic and safety investment programme," Areva said in a statement.

Montreal-based La Mancha Resources has gold mines in Africa and Australia.

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