Fission Uranium (TSX: FCU) has been granted federal approval for its acquisition by the Australia-based Paladin Energy. The firm this morning indicated that the Minister of Innovation, Science and Industry has provided clearance under the Investment Canada Act to proceed with the transaction.
The transaction, announced back in late June, will see Paladin Energy acquire Fission for a figure initially pegged at $1.14 billion. Under the terms of the arrangement, each Fission shareholder is set to receive 0.1076 Paladin shares for each share of Fission they hold.
READ: Paladin Energy to Acquire Fission Uranium in a $1.14 Billion All-Share Deal
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While the transaction price initially was pegged at about $1.30 per share in terms of implied value, that figure has since fallen to about $0.75 per share, thanks in part to waning investor interest within the uranium sector, as well as fluctuating currencies. Year to date, Paladin has declined 23% to $7.81 per share, after trading as high as $17.98 back in May.
The transaction is slated to close in early January 2025, now that all approvals are in place.
Fission Uranium last traded at $0.72 on the TSX.
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