Uranium Energy Closes On Purchase Of UEX Corp
It appears the battle over UEX Corp (TSX: EUX) between Uranium Energy (NYSE: UEC) and Denison Mines (TSX: DML) was short lived. The acquisition of UEX was completed this morning by that of Uranium Energy.
Following shareholder approval for the transaction being granted on August 15, the Supreme Court of British Columbia approved the purchase late last week. The transaction saw UEX shareholders received 0.09 common shares of UEC for each UEX share held, which equates to $0.41 per share as of Friday’s close.
This compares to the offer recently made by Denison, which would have seen the Canadian uranium explorer pay 0.32 shares per UEX share, which as of Friday’s close equates to $0.43 per share. The latest bid by Denison was made on August 9, which then resulted in Uranium Energy increasing its offer by 0.001 share per share held of UEX, in what is quite possibly one of the cheapest bidding battles seen for a public company.
“We are pleased to have completed our acquisition of UEX. This marks UEC’s second successful highly accretive M&A transaction in the last year, creating the largest diversified North American focused uranium company. We welcome UEX shareholders to UEC and appreciate the vote of confidence in supporting our transaction. The competing interest for UEX from other industry participants further validates the significant upside and strategic rationale we identified in UEX’s portfolio of high-grade projects in the world-class Athabasca Basin of Saskatchewan,” commented Amir Adnani, CEO of Uranium Energy.
Uranium Energy Corp last traded at $3.53 on the NYSE.
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