French reactor builder Areva bids $2.5 billion for uranium explorer UraMin

18 June 2007

Mumbai: State-owned French nuclear reactor builder Areva has made a $2.5-billion cash offer to acquire all the shares in uranium explorer UraMin.

The cash offer which would be made through its indirect subsidiary CFMM Developpement, values Toronto-listed UraMin at $7,25 a share, which represented a premium of 21 per cent over the company''s 20-day weighted average trading price ending June 8.

The board of directors of UraMin had determined that the offer was fair and in the best interest of its shareholders and recommended that the offer be accepted. All directors and certain other shareholders, representing some 25 per cent of the outstanding shares, had entered into lock-up agreements with Areva and had agreed to tender all their sharesm UraMin added.

Areva, which already owns 5.5 per cent of UraMin, said the acquisition would "perfectly fit" into its strategy to significantly increase its uranium production in the medium term.

The explorer said it would mail the offer and takeover circular to its shareholders. The offer would be open for more than 35 days. However, it cautioned that no assurance could be given that the negotiations would be successful, the company said in a statement.

Established in 2005, UraMin owns uranium properties in Namibia , South Africa, and the Central African Republic . The explorer is currently focusing on the development of its advanced stage exploration projects at Trekkopje in Namibia, Bakouma, in the Central African Republic ,and Ryst Kuil, in South Africa.