Central African Mining & Exploration Company PLC (CAMEC) plans to take over Katanga Mining, a TSX-listed miner focused in the Democratic Republic of Congo.
CAMEC, based in the U.K., already owns 22 per cent of Katanga common stock. It intends to offer 15 of its shares for each Katanga share, valuing Katanga at $20.85, said the company in a press release.
Katanga 3-month stock chart
On the TSX Monday, shares of Katanga were at $24.74, up $1.48 over Friday's close. Shares of the company gained 14 per cent on Friday following reports of a looming takeover.
Katanga said Monday it had not yet received a formal offer.
"If, and when, an offer is made, the board will communicate with Katanga shareholders after it has had an opportunity to review the offer," said the company in a statement.
Listed on London's key stock exchange, CAMEC is primarily focused on the mining and production of copper and cobalt in the Democratic Republic of Congo.
"Katanga’s board of directors will be reviewing all available strategic alternatives, together with its advisory team, which has been assembled to assist in ensuring that shareholder value is maximized," added Katanga.
Katanga previously said it was in the process of adopting a poison pill defence plan to prevent a creeping takeover.
The Congo holds about one-tenth of the world's copper reserves and one-third of its cobalt. Katanga is in the process of restarting one of the region's biggest mines.
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