Canadian uranium producer Uranium One to sell itself to Russia's ARMZ for $2.79 bn

14 Jan 2013

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Uranium One Inc, Canada's second-largest uranium producer, today agreed to sell itself to Russia's JSC Atomredmetzoloto and its affiliate, Effective Energy N.V., collectively termed ARMZ, for C$2.74 billion ($2.79 billion).

JSC Atomredmetzoloto, a wholly owned subsidiary of Rosatom, the Russian State Corporation for Nuclear Energy, is already the largest shareholder in Uranium One.

ARMZ, which currently own 51.4 per cent of Uranium One, will buy the remaining for C$1.33 billion, a 32-per cent premium to the 20-day volume weighted average price of the common shares on the Toronto Stock Exchange for the period ending 11 January.

The deal values the Toronto-based uranium miner at C$2.74 billion.

The proposed acquisition provides for a non-solicitation covenant from Uranium One and ARMZ with a "right to match". It also requires Uranium One to pay a termination fee of C$45 million in certain circumstances.

A special committee of independent directors of Uranium One said that the deal is in the best interests of the company and is fair to its shareholders.

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