Egyptian billionaire pays $492 million for La Mancha Resources

Naguib Sawiris, an Egyptian mobile phone entrepreneur, is paying $492 million for gold miner La Mancha Resources (TSE:LMA).

The company's board has unanimously recommended that the shareholders accept the agreement.

"The Offer represents a premium of approximately 55.6% to the closing price of the Company's common shares on the TSX on July 12, 2012, immediately prior to the announcement of the Offer and a premium of approximately 43.1% to the 20-day volume weighted average price as at July 12, 2012 of the Company's common shares on the TSX," writes the company in a news release.

La Mancha has four operating mines, two in Australia and two in Africa. The company's head office is in Perth.

In March the company started an auction process looking to be acquired. The board unanimously settled on Sawiris' offer.

Sawiris is a poltician and businessman with interests in telecoms, construction and fertilizers, cement, real estate and hotel development industries.

His estimated net worth is US$2.5 billion, making him the world' 374th richest person according to Forbes.

Before the acquisition was announced, La Mancha had lost over 25% of its share price over the last three months and was trading near its 52-week low of $2.05 a share. Today the company's stock was up 52% to $3.44 a share.

In June La Mancha released "significant" results from its Hassaï property in Sudan.

Image of Naguib Sawiris by Ahussam