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PUNJABIon Jan 15, 2013 8:35am
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Globe says Uranium One buyout could get rejected
Globe says Uranium One buyout could get rejected
Globe says Uranium One buyout could get rejected
Ticker Symbol: C:UUU
Globe says Uranium One buyout could get rejected
Uranium One Inc (C:UUU)
Shares Issued 957,189,036
Last Close 1/14/2013 $2.76
Tuesday January 15 2013 - In the News
The Globe and Mail reports in its Tuesday edition that Russia's state uranium firm ARMZ has offered to take Uranium One private in a $1.3-billion deal, but it may get rejected by shareholders. The Globe's Pav Jordan and Bertrand Marotte write many shareholders have been holding out for years for a rebound that could be just around the corner. Minority shareholders are being offered $2.86 per share in the transaction that must be approved by holders of two-thirds of the company's stock. Uranium One said on Monday it agreed to the deal with JSC Atomredmetzoloto and affiliate Effective Energy NV -- which own 51.4 per cent of the company and are known together as ARMZ. The offer is 15 per cent higher than the close on Friday at $2.41 a share, and 60-per-cent higher than where the stock was trading in early December. Even so, the offer values Uranium One shares at less than half the $6.79 per share level hit in 2011, just before the industry was sent into a tailspin after an earthquake and tsunami in Japan. Now Japan is looking again to restart idled reactors, and experts are signalling a gradual revival for uranium prices. Desjardins analyst John Hughes said in a note the offer is opportunistic and insufficient.