Areva to sell gold producing unit La Mancha to Weather II for C$315 mn

French nuclear giant Areva yesterday said that it will sell its majority stake in its Canadian gold producing subsidiary La Mancha Resources to Weather II Investments, a business managed by Egyptian billionaire Naguib Sawiris, for C$315 million.

Paris-based Areva will sell its entire 63 per cent to Weather II for C$3.50 per share in cash, a premium of 55.6 per cent to the closing price on the Toronto Stock Exchange on 12 July.

Post sale, Weather II will make an offer to acquire the remaining outstanding common shares of the company under the Canadian corporate and securities laws. The total cost of the acquisition will be C$500 million ($492 million)

Areva said that it had launched an auction process at the request from its wholly-owned subsidiary and La Mancha's majority shareholder, Compagnie Française de Mines.

After the review of a number of proposals from different parties, La Mancha's board agreed to recommend Weather II's offer.

Toronto, Montreal-based La Mancha is an international gold producer operating four mines in Australia, Sudan and the Ivory Coast in Africa and exploratory projects in Australia, Sudan, the Ivory Coast and Argentina.