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Central African to buy Katanga Mining in US$1.4 billion deal

Central African to buy Katanga Mining in US$1.4 billion deal

Central African Mining & Exploration Co. said Wednesday it offered to buy Katanga Mining Ltd., a company with operations in Congo, for 1.52 billion Canadian dollars (US$1.4 billion; euro1.1 billion) as it seeks to become the world's largest cobalt producer.
Central African offered 17 of its shares for each Katanga share, Central African said in a statement. Katanga shares are listed on the Toronto Stock Exchange, where they closed at C$22.50 (US$21.28; euro15.61) on Aug. 27.
Central African owns 22 percent of Katanga and has reached agreement with shareholders representing approximately 32 percent of the company to buy their stock.
"The combined entity will have a strong reserve and resource base and an attractive African exploration and development portfolio," Central African said in a statement. "The merged company will be well-placed to benefit from expected further consolidation amongst the developing copper and cobalt producers" in Congo.
The combined entity will have a targeted production capacity of approximately 250,000 metric tons (275.6 million U.S. tons) of copper and 20,000 metric tons (22,000 U.S. tons) of cobalt per year. At full production, Central African will produce approximately 60 percent of the cobalt and Katanga 60 percent of the copper for the combined entity.
Central African shares dipped 2.9 percent to 50.50 pence (US$1.01; euro0.74) on the London Stock Exchange.


Updated : 2021-05-06 10:09 GMT+08:00