Ottawa sells more Cameco shares

The federal government has arranged to sell 5.9 million special warrants, or about 11.5%, of Cameco (TSE) to the public at $14.60 per warrant.

Each warrant will entitle the holder to receive one common share of Cameco currently held by federally owned Canada Eldor.

The share transaction, which was completed on a bought deal basis with a group of investment dealers, represents a substantial discount to the uranium producer’s recent trading value of $16.25.

Last summer, Cameco sold 9.6 million common shares at $12.50 in the first of a series of proposed public offerings.

After the sale, Cameco will be 19.3% owned by the federal government, 38.9% owned by the Province of Saskatchewan and 41.8% owned by the public. The transaction is expected to close on or before Feb. 18, 1992.