7 November 2007 – LAWFUEL – The Law Firm Newswire – Linklaters has advised Nikanor PLC, the AIM-listed mining group with assets in the Democratic Republic of Congo (‘DRC’), on its recommended merger with Katanga Mining Limited, which operates a major cobalt-copper mine complex in the DRC and is listed on the Toronto Stock Exchange (‘TSX’).
The merger will create a company with a combined market capitalisation of approximately US$3.3bn*. It will be effected via an offer by Katanga for Nikanor together with a cash return to Nikanor shareholders of US$452m. The new company will undertake a primary listing on the main market of the London Stock Exchange within five months of the merger becoming effective.
The merger will bring together the adjacent properties in the DRC owned by Nikanor and Katanga which were previously part of the same mine complex, to create a major single-site operation. It is believed that the combined operations will be the largest single-site project in the world producing both copper and cobalt. The new company, to be known as Katanga Mining Limited, has the potential to become Africa’s largest copper producer and the world’s largest cobalt producer by 2011.
Linklaters’ team was led by M&A partners Charlie Jacobs and Robert Cleaver in London and projects partner Simon Ratledge in Paris, and also included M&A, projects, tax and employee incentives lawyers.
Linklaters previously advised Nikanor on its IPO on London’s Alternative Investment Market and cash placing in 2006.
Charlie Jacobs, co-head of Linklaters’ mining sector group and Linklaters’ Africa practice, said:
“Having advised Nikanor since its AIM listing and its cash placing last year, we are pleased to be acting for the company again on its merger with Katanga, which represents a significant step in the transformation of the DRC’s mining sector and creates an industry leader in copper and cobalt. The transaction continues our track-record of advising on the leading deals in Africa and in the mining sector.”