BVI-registered UraMin Inc. agrees on possible takeover with French group AREVA
French nuclear energy group Areva launched an agreed takeover for UraMin Inc., having valued it at more than $2.5 billion, which is a 21% premium over UraMin 20-day average trading price as of June 8, 2007. It was announced that Areva and UraMin entered into an agreement in respect of Areva’s friendly cash offer for 100% of the share capital of UraMin, while Areva already owned 5.5% of UraMin. The cash offer was pitched at $7.75 per UraMin share.
Also, in connection with the offer, all directors and some other shareholders representing approximately 25% of the outstanding UraMin shares have entered into lock-up agreements with Areva pursuant to which they have agreed to tender all their UraMin shares to AREVA’s offer.
The support agreement entered into between Areva and UraMin provides for, among other things, in case a superior proposal is accepted by UraMin, a right to match in favour of Areva. The agreement also includes a break up fee of US$ 75 million in favour of AREVA under certain circumstances.
UraMin is an emerging Africa-focused uranium producer, having mineral rights in Namibia, South Africa, Mozambique, Botswana, Chad and the Central African Republic. The company was registered in February 2005 in the British Virgin Islands and is listed on London and Toronto stock exchanges. The Company currently has working capital of approximately US$285 million, and a market capitalization of approximately US$2 billion.
UraMin’s shares, which have already doubled this year, jumped another 10% after the sale announcement. The company has three projects that are due to start production by the end of 2009.