Angling to boost its presence in the U.S. uranium market, SXR Uranium One (SXR-T) has tabled an all-share, friendly offer to buy uranium junior Energy Metals (EMC-T, EMU-N).
SXR is offering 1.15 shares for every Energy Metals share, representing avalue of C$19.12 per share based the closing prices in Toronto on June 1, 2007. SXR notes that this is a 28% premium to the 20-day volume-weighted average trading prices of SXR’s and Energy Metals shares on the TSXfor the period ending May 17, 2007, the day before EMC announced that it had entered into exclusive negotiations with respect to a potential sale of the company.
The combined company, which would be owned 79% and 21% by existing SXR and Energy Metals shareholders, repsectively, would have a fully diluted market capitalization of US$7.8 billion, and a cash balance of US$678 million (includes proceeds from in the money warrants and options).
After Cameco (CCO-T, CCJ-N), the enlarged company (named Uranium One) will boast the second-largest uranium reserve and resource base in the world in terms of publicly traded, pure play uranium companies.
The expanded Uranium One will have two producing mines in Kazakhstan and South Africa, plus a pipeline of nine projects which the company says will have the potential to deliver year-on-year growth in production out to 2013.
Roughly 70% of Uranium One’s uranium output will come from in situ leaching mines.
Energy Metals has agreed to pay a break fee to SXR of C$55 million.
Be the first to comment on "SXR Uranium One to buy Energy Metals (June 04, 2007)"