Eurasian eyeing African rival
MINING group Eurasian Natural Resources (ENRC) said yesterday it was in advanced talks to buy the Central African Mining and Exploration Company (Camec), in a deal which could be worth £574m.
The Kazakh company, which produces raw materials for steelmaking and provides them to Russia and China, said it was considering a cash offer of 20p per share.
“However, whilst ENRC is engaged in such discussions and is assessing the merits of a potential transaction, there can be no certainty that any such transaction will proceed,” it said yesterday.
Camec, which is Aim-listed and chaired by former England cricketer Phil Edmonds, said over the summer that it had been approached about a possible takeover from unnamed parties.
Shares in the group have nearly doubled since the statement on 16 July.
If ENRC’s bid was successful, it would give it access to cobalt and coal operations in the Democratic Republic of Congo, a stake in the Bokia platinum project in Zimbabwe, a bauxite operation in Mali, and a stake in a flourspar operation in South Africa.
Camec’s biggest shareholder is Israeli-based resources investor Dan Gertler, who has a holding of about 35 per cent.
Last month, ENRC said its pre-tax profits fell 63 per cent to $751m, putting it level with most industrial metal producers for the year.