Uranium One Inc. (UUU.TO: Quote) Monday said it has entered into a definitive agreement with JSC Atomredmetzoloto and its affiliate, Effective Energy N.V., under which the company would be taken private pursuant to a plan of arrangement. ARMZ and its affiliates currently own 51.4 percent of the Uranium One common shares.
Under the Plan of Arrangement, ARMZ would acquire all common shares that ARMZ and its affiliates do not already own for cash consideration of C$2.86 per share. The cash consideration represents a 32 percent premium to the 20-day volume weighted average price of the common shares on the Toronto Stock Exchange for the period ending January 11.
The transaction provides total consideration to minority shareholders of around C$1.3 billion and implies an equity value for Uranium One of about $2.8 billion.
The Board of Directors of Uranium One has unanimously determined that the Plan of Arrangement is in the best interests of the company and is fair to its shareholders, following the recommendation of a special committee of independent directors.
It is expected that the transaction, if approved by Uranium One securityholders and the Court, will be completed in the second quarter.
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by RTT Staff Writer
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