Areva sells La Mancha stake for C$315 million

Fri Jul 13, 2012 1:48pm EDT
 
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PARIS (Reuters) - French nuclear reactor maker Areva (AREVA.PA: Quote) said it expects to earn C$315 million from selling its stake in Canadian gold producer La Mancha Resources LMA.TO to Weather II Investments, a business managed by Egyptian entrepreneur Naguib Sawiris.

Weather II has agreed to buy La Mancha at a price of C$3.50 per share in cash, which Areva said represented a premium of 55.6 percent to the closing price on July 12 and 43.1 percent to the 20-day volume weighted average price.

"The sale will contribute to further reduce Areva's net debt and helps to finance the group's strategic and safety investment programme," Areva said in a statement on Friday.

(Reporting by James Regan; Editing by Brian Love)