Sawiris Buys La Mancha For $493 Million

Bloomberg reported the founder of Orascom Telecom Holding SAE , Egyptian billionaire Naguib Sawiris, agreed to buy Canada’s La Mancha Resources Inc. for $493 million, adding to his gold investments.

As quoted in the report:

Sawiris’ Weather Investments II SARL will pay C$3.50 a share for La Mancha, the Montreal-based company said today in a statement. That’s 45 percent more than La Mancha’s 20-day average price before today and compares with the 50 percent average premium in gold takeovers valued $100 million or more announced this year, according to data compiled by Bloomberg.

Vancouver-based analyst at Canaccord Genuity Corp., Nicholas Campbell, commented:

It’s a 13 percent discount to La Mancha’s 52-week high, which is pretty decent in this market. It’s a good price and it’s in cash too.

Click here to read the full Bloomberg report.