The russians are back
Paladin Energy: The Takeover Speculation Intensifies
Paladin Energy (PALAF.PK), a uranium production company, has reported that analysis of its share register has revealed that a company registered in Luxembourg, Cheetah Resources SARL, has acquired a material shareholding in Paladin.
Although not at a level requiring the lodgement of a substantial shareholder notice, the shareholding raises questions about the identity of the buyer.
Based on publicly available information, Cheetah Resources appears to be a 100% owned subsidiary of TSX/JSX listed uranium company, Uranium One Inc (SXRZF.PK).
Uranium One has a market capitalisation of approximately US$1.5 billion. However, upon further investigation, the company has links to Rosatom, the State Corporation controlling all of Russia’s nuclear activities.
Paladin is the largest independent, pure play publicly traded global uranium producer with a market capitalization of approximately A$2.7 billion. Paladin has two operating mines in Africa and advanced exploration and development assets globally.
A strong production growth profile is expected to expand Paladin’s current production base to in excess of 14Mlb of U3O8 by 2014.
Managing Director John Borshoff said that, to date, Paladin has not been contacted by either Cheetah Resources or Uranium One in regard to this shareholding and is not aware of their intentions in relation to the holding.
As of April 22, 2010, and based on available information, Paladin believes a minimum of 9,839,156 shares have been purchased, which would be equivalent to 1.4% of issued capital.
Interestingly, Uranium One’s largest shareholder is Effective Energy NV, a 100% owned subsidiary of ARMZ Uranium Holding Co., which is the appointed and authorized uranium feedstock supplier to the Russian Nuclear Industry.
ARMZ is part of Rosatom. According to the World Nuclear Association, Russia is moving steadily forward with plans for a much expanded role of nuclear energy, with the intention to double output by 2020.
Paladin said the information should be conveyed to the market for the purposes of keeping the market fully informed, particularly in view of the concentrated nature of the global uranium industry and the role Paladin plays in this exclusive sector.
https://seekingalpha.com/article/202091-paladin-energy-the-takeover-speculation-intensifies