Cape Town - Uranium One [JSE:UUU], Canada's No.2 uranium producer,
said it has entered into an agreement with Russia's JSC Atomredmetzoloto and
its affiliate, Effective Energy N.V., collectively termed ARMZ, to go private
in a deal that values the company at C$2.74bn ($2.79bn).
The company, which is also listed on the JSE, said that ARMZ
will buy all the common shares that ARMZ and its affiliates do not already own
for C$2.86 per share, a premium of 19% over the stock's Friday close.
ARMZ and its affiliates, who currently own 51.4% of Uranium
One's common shares, will buy the remaining shares at C$1.33bn, according to
Thomson Reuters data.
The Toronto-based miner owns assets in Kazakhstan, the
United States and Australia, and is the operator of the Mkuju River project in
The agreement provides for a non-solicitation covenant from
Uranium One and ARMZ with a "right to match". It also requires
Uranium to pay a termination fee equal to C$45m in certain circumstances.
The transaction, approved by the Uranium One board, is
expected to be completed in the second quarter of 2013, the company said in a
Canaccord Genuity Corp was the financial advisor to the
independent committee that was set up by the Uranium One board for this deal
while ARMZ was advised by BMO Capital Markets.
Uranium One shares closed at C$2.41 on Friday at the Toronto
On the JSE the company's shares were up 13.30% to R24.36 in
Monday morning trade.
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