Fission Uranium shareholders agree to Paladin Energy takeover
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Paladin Energy rose in morning trade on the ASX after shareholders of Canada's Fission Uranium approved a takeover by the Perth-based uranium explorer.
The numbers: Paladin shares were up 2.5% to $8.58 by 11:30am AEST, having lowered by around 15% over the last month.
About 67.9% of the votes cast at a special meeting of Fission shareholders were made in favour of the deal, just exceeding the required 66.66% threshold.
In June, Paladin announced its proposal to acquire 100% of Fission shares at C$1.30 ($1.43) at an implied equity value of $1.25 billion.
On completion of the deal, Fission shareholders will own 24% of Paladin which will have a pro-forma market capitalisation of approximately USD3.5 billion ($5.27 billion). Paladin shareholders will own about 76% of the combined company.
The context: The deal is still subject to certain customary closing conditions, including Investment Canada Act clearance and receipt of a final order approving the transaction from the Supreme Court of British Columbia. The court hearing for the final order is expected to take place on 12 September.
What they said: "We fully expect that the combination of our companies will create significant value for all shareholders," Paladin CEO Ian Purdy said.
"Fission's Patterson Lake South project is a natural fit for Paladin, delivering medium term development potential to augment production from the recently restarted Langer Heinrich Mine.
"With producing assets, a quality near term development project and a global portfolio of exploration assets, Paladin is well positioned to continue to deliver value for its shareholders from the structural demand shift for uranium driven by global decarbonisation."
The source: ASX announcement
