Saad Investments, the Saudi fund that manages the wealth of an Arab billionaire, has reportedly made a 22p a share takeover offer for Kopane Diamond Developments. Kopane operates the Liqhobong diamond mine in Lesotho together with the Government of Lesotho, which holds a 25% stake in it.

At the end of last year, Kopane placed the mine on care-and-maintenance due to market turbulence.

Saad also owns 44% of Petra Diamonds, which over the past two years acquired several productive diamond mines from De Beers.  It is believed that Saad is striving to amalgamate the two diamond groups.

The African miner Obtala Resources run by Ferank Scolaro, former CEO of Regal Petroleum, is said to have raised its stake to just below the 30% threshold, which would then trigger a bid. It has reportedly consented to sell the stake to Saad.

Shares in Kopane remained steady at 12¼p.