PALADIN Energy said on Wednesday it was still waiting on regulatory approval for its proposed C$1.1bn takeover of Canada’s Fission Uranium Corp.
This was despite Fission Uranium receiving on October 8 a final order from the Supreme Court of British Columbia approving the arrangement in which Paladin has offered 0.1076 shares for each of Fission’s shares.
Paladin said on October 2 Fission’s 11.26% shareholder CGN Mining Company Ltd, a subsidiary of China General Nuclear Power Corp. had opposed the court application.
In that announcement, Paladin also said it had received a notice from Canada’s Minister of Innovation, Science and Industry ordering a national security review of the arrangement under the Investment Canada Act (ICA).
The Act, essentially protectionist in nature, ensures that the most significant investments into Canada by non-Canadians benefit the country’s economy. Said Paladin: “Accordingly, consideration of the Arrangement under the ICA has been extended and remains ongoing”.
In its update today, Paladin said “there can be no certainty that Paladin will be able to obtain ICA clearance in a timely manner or at all”. It added that “Failure to obtain ICA clearance would prevent the Arrangement from being successfully completed”.
There is no evidence of deal jeopardy in Paladin shares, however. While they edged down marginally in Sydney today, the stock is 40% higher since September.
If the deal is consummated, Fission shareholders will own 24% of Paladin which will have a pro-forma market capitalisation of approximately $3.5bn.
Paladin’s proposed takeover comes amid improved sentiment for uranium as a key component of the global power mix. In anticipation of this, 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.
“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 June 24.
