PALADIN Energy today announced an all-share takeover of Toronto-listed Fission Uranium Corp. which values the Canadian firm at C$1.1bn.
A special committee appointed by Fission Uranium to consider the offer has unanimously approved the transaction in terms of which Paladin has offered 0.1076 shares for each of Fission’s shares. The offer represents a 25.8% premium to Fission’s closing share price on June 21, and a 30% premium to the 20-day VWAP (volume weighted average price).
The combined group will have production at Paladin’s Langer Heinrich mine in Namibia and the prospect of production from Fisson’s Patterson Lake South project in Canada’s Athabasca Basin in 2029.
Paladin said it hoped to conclude the takeover in September. Shareholder approval of 66% by Fisson Uranium shareholders is required. Paladin does not require shareholder approval for the deal to go through.
“The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” said Ian Purdy, CEO of Paladin in a statement.
On deal completion, Fission shareholders will own 24% of Paladin which will have a pro-forma market capitalisation of approximately US$3.5bn.
Paladin gave the green light to the restart of its Langer Heinrich mine in Namibia in 2022, about six years after a plummeting uranium oxide price forced it to close.
Uranium is back on the investment radar as energy security fears were thrown into sharp relief following the invasion of Ukraine by Russia in 2022. Prices for the fuel hit their highest level in more than 16 years during January and although the price has taken a breather, analysts think the fuel could become a long-term bet for investors.
Globally, 61 nuclear plants are under construction, another 90 or so are in the planning stage, and more than 300 have been proposed, said Bloomberg News last week.
