MONTREAL - La Mancha Resources Inc. (TSX:LMA) shares gained 52 per cent after a firm run by an Egyptian billionaire offered to buy the gold miner for $499.5 million.
The Montreal-based miner said Friday that the investment company Weather Investments II, owned by Naguib Sawiris, founder of Orascom Telecom Holding, has offered $3.50 per share in cash for La Mancha.
The offer was a 55.6 per cent premium to the company's closing price Thursday on the Toronto Stock Exchange.
After the offer was announced, La Mancha's shares jumped $1.18 to $3.43, still slightly lower than the offer price.
La Mancha has two gold mines in Africa and two more in Australia.
Egypt's Sawiris family also has interests in the telecom, construction and fertilizers, cement, real estate and hotel development industries. Orascom holds a substantial stake in Canadian wireless firm Wind Mobile.