Fission shareholders will receive 0.1076 Paladin shares for each Fission share they own.
Paladin Energy announced that it has reached an agreement to buy Canada’s Fission Uranium Corp for an implied equity value of 1.14 billion Canadian dollars (US$833.03 million).
The deal comes at a time when prices for uranium, used to power most of the world’s nuclear reactors that supply 16% of the world’s energy, rose significantly last year due to growing demand and limited supply.
Under the offer, Fission shareholders will receive 0.1076 Paladin shares for each Fission share they own, the company said, adding that the deal implies a value of C$1.30 per share to the Canadian miner, a premium to 25.8% above its closing price of C$1.03 on Friday.
Paladin has applied to list its shares on the Toronto Stock Exchange (TSX), where Fission shareholders will own 24% of Paladin shares, the company said.
Fission’s board of directors recommended that shareholders vote in favor of the transaction, Paladin added.
“This agreement significantly de-risks mine construction financing at the Patterson Lake South (PLS) projects, with cash flow generation at Langer Heinrich and a strong balance sheet creating an opportunity to significantly finance the development of PLS,” said the president and CEO of Fission. Ross McElroy said.
