Cameco Corp, Canada's largest uranium producer, today launched a C$520-million ($527.8 million) cash bid for its junior rival Hathor Exploration Ltd, after talks for a mutually agreed merger failed.
Saskatoon, Saskatchewan-based Cameco is one of the world's largest uranium producers, accounting for about 16 per cent of the world's production from its mines in Canada, the US and Kazakhstan. The company has about 480 million pounds of proven and probable uranium reserves.
Cameco, the world's largest publicly traded uranium company, holds acreages in the world's most promising areas for new uranium discoveries in Canada and Australia and is also a leading provider of processing services required to produce fuel for nuclear power plants.
It also generates 1,000 MW of clean electricity through Bruce Power Limited Partnership in North America's largest nuclear generating station located in Ontario, Canada.
Cameco said that it delivered a written proposal to Hathor on 19 August outlining its interest in acquiring the company for $3.75 per share in cash and today went public with its offer after discussions with Hathor for a potential board-supported transaction failed to result in an agreement.
The offer price of $3.75 represents a premium of 40 per cent over Hathor's closing price and 33 per cent over Hathor's 20-day volume-weighted average price as at 25 August 2011.
Hathor's stock closed at $2.67 yesterday.