Paladin Energy Ltd. (PDN.AX), an Australian Uranium producer, announced on Monday that it has signed a deal to buy Fission Uranium Corp. (FCU.TO) for C$1.30 per Fission share or C$1.140 billion.
The Fission shareholders will receive 0.1076 share of Paladin for each Fission share held at the closing of the deal.
The per share price of C$1.30 represents a 25.8 percent premium to the closing price of the Fission shares on the Toronto Stock Exchange and a 30 percent premium to the 20-day volume weighted average price as of June 21.
Upon the completion of the transaction, to be closed in the September quarter, Fission will own 24 percent of Paladin, which will have a pro-forma market capitalization of around $3.5 billion. The remaining 76 percent will be owned by Paladin.
Ian Purdy, CEO of Paladin, said: "Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada's Athabasca Basin. The addition of PLS creates a leading Canadian development hub alongside Paladin's Michelin project, with exploration upside across all Canadian properties."
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