Uranium Energy Corp (NYSE: UEC) has upped its prior offer to acquire UEX Corp (TSX: UEX) following the announcement of Denison Mines (TSX: DML) making a better bid last month for the uranium firm. The revised offer came across on Friday after hours from UEC, with Uranium Energy at the time stating that the revised offer “represents a value-creating opportunity for UEC and UEX shareholders.”
Fast forward to this morning, and the duo formally announced that they have agreed to amend the prior arrangement to proceed with this new offer. Denison, likewise, announced this morning that its confidential offer to acquire UEX has formally expired.
“While it is puzzling that the UEX board was not compelled by the premium offer made by Denison, we are nevertheless happy to see exploration assets in the Athabasca Basin so coveted by other industry participants,” commented David Cates, CEO of Denison Mines.
The revised agreement between Uranium Energy Corp and UEX will see the latter acquired for the equivalent of $0.49 per share, versus the prior offer of $0.43 per share, a 13.95% price increase. UEX shareholders are now set to receive 0.089 shares of UEC for each share of UEX held. The termination fee associated with the arrangement has also been increased by 7%.
“We are pleased to have come to an agreement with UEX and look forward to completing this Transaction following the UEX Shareholder vote tomorrow. As mentioned previously, the acquisition is expected to double UEC’s uranium resources at only 14.2% dilution to existing UEC Shareholders. Completion of this Transaction will create the largest, diversified North American focused uranium company with 100% unhedged production,” commented Uranium Energy CEO Amir Adnani.
UEX shareholders are set to vote on the transaction tomorrow at a special meeting of shareholders. If approved, the transaction is expected to close by mid month, subject to regulatory approvals.
Uranium Energy Corp last traded at $4.26 on the NYSE.
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