Paladin Energy to Acquire Fission Uranium in C$1.14 Billion Deal

Australia's Paladin Energy (ASX:PDN,OTCQX:PALAF) has announced plans to acquire Saskatchewan-focused Fission Uranium (TSX:FCU,OTCQX:FCUUF) in a transaction valued at C$1.14 billion.

“The acquisition of Fission, along with the successful restart of our Langer Heinrich Mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” said Paladin CEO Ian Purdy in a press release on Monday (June 24).

Under the terms of the agreement, Paladin will acquire 100 percent of the issued and outstanding shares of Fission, while Fission shareholders will receive 0.1076 fully paid shares of Paladin for each Fission share that they hold.

This exchange represents an implied value of C$1.30 per Fission share, a 25.8 percent premium to Fission's closing price on June 21, and a 30 percent premium to the company's 20 day volume-weighted average price.

Once the transaction is complete, Fission shareholders will own approximately 24 percent of the combined entity, while Paladin shareholders will account for the remaining 76 percent.

Fission President and CEO Ross McElroy also commented on the deal, saying it will create a diverse world-class uranium producer that has "the ability to expand production and cash flow profiles in the near term."

Paladin has applied to list its shares on the TSX, ensuring that Fission shareholders will receive TSX-listed Paladin shares.

The companies are targeting to complete the transaction by this year's September quarter.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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