JOHANNESBURG (Reuters) - Uranium company sxr Uranium One Inc. said it would acquire Toronto-listed Energy Metals Corporation in an all-share deal that would enhance its asset portfolio in the United States.
Uranium One said on Monday EMC shareholders would receive 1.15 common of its shares for each issued share of EMC, representing a value of C$19.12 per share. The offer values EMC at C$1.59 billion.
"With our solid position in Kazakhstan and South Africa, the acquisition of EMC fits in perfectly with our stated strategy of value-accretive external growth and our focus on growth in the United States," Uranium One President and Chief Executive Officer Neal Froneman said in a statement.
Uranium One said the offer represented a 28 percent premium to the 20-day volume weighted average trading prices of Uranium One's and EMC's shares on the TSX for the period ending May 17, 2007.
EMC announced on May 18 it had entered into talks with respect to a potential sale of the company.
EMC President and CEO Paul Matysek said the transaction provided shareholders immediate exposure to uranium production, cash flow and new avenues for growth.
By 1326 GMT, the Johannesburg listed shares of Uranium One were down 2.10 percent at 109.50 rand.
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