Paladin to acquire Canada’s Fission Uranium for $1.25b
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The news: Paladin Energy has announced that it's agreed to acquire Canada’s Fission Uranium for $1.25 billion.
The numbers: Paladin will purchase 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: Paladin said it had applied for listing of Paladin shares on the Toronto Stock Exchange and Fission shareholders would receive TSX-listed Paladin shares.
The company said the acquisition would create a “clean energy leader” that would have: an enhanced project development pipeline; multi-asset production expected by 2029; presence across Canada, Namibia and Australia; and increased exposure to long term uranium fundamentals.
The transaction requires at least 66% of votes from Fission shareholders.
What they said: Paladin CEO Ian Purdy said the combined entity would represent “one of the largest amongst pure-play uranium companies globally and a substantially increased international capital markets exposure”.
“The transaction also de-risks the development of Patterson Lake South [PLS] for Fission shareholders… Paladin will bring the required investment to PLS in order to advance it towards production,” he said.
The source: ASX announcement
