AtomRedMetZoloto (ARMZ) is set to acquire Uranium One in its entirety in a deal that values the Canadian-based uranium producer at around C$2.8 billion ($2.84 billion).
|Uranium One operations at South Inkai in Kazakhstan (Image: ARMZ)
ARMZ and its affiliates already own 51.4% of Uranium One's common shares. Uranium One's minority shareholders are now to be asked to approve a plan of arrangement that would see ARMZ acquire the remaining 48.6% for a cash consideration of C$2.86 ($2.90) per share totalling some C$1.3 billion and implying an approximate equity value of C$2.8 billion for the company.
Uranium One shareholders will be asked to approve the plan at a special meeting to be held in March. The plan must receive approval from a majority of shareholders other than ARMZ and its affiliates, as well as approval from two-thirds of all the holders of common shares. It will also be subject to regulatory approvals and conditions.
If approved, the transaction is expected to be completed in the second quarter of 2013, with Uranium One subsequently being delisted from the stock exchange to become a private company.
A deal made in 2010 involving $610 million cash and an exchange of Kazakh uranium assets saw Russian state-owned uranium company ARMZ take majority ownership of Uranium One while propelling Uranium One into the world's top five uranium producers. Uranium One's portfolio includes uranium operations in Kazakhstan, the USA and Australia, and the company will also be the operator of the Mkuju River project in Tanzania which is currently undergoing licensing.
ARMZ chairman Vadim Jivov said that the Russian company's intended development plans for Uranium One would still stand. "Despite the uranium industry's currently challenging outlook, ARMZ will continue with its strategy of developing Uranium One into the leading global uranium producer, which was the basis of our original investment," he said.
Researched and written
by World Nuclear News