Massive Uranium Merger!
TORONTO, Sept 18 (Reuters) - Denison Mines Inc. (DEN.TO: Quote, Profile, Research) and International Uranium Corp. (IUC.TO: Quote, Profile, Research) have agreed to merge in an all-stock deal that will create a mid-tier uranium producer, the companies said on Monday.
Under the terms of the agreement, Denison shareholders will exchange each share for 2.88 IUC common shares. Based on IUC's Monday closing price of C$5.91 on the Toronto Stock Exchange, that places a value of C$17.02 for every Denison share. Total value of deal is about C$522 million, based on 30.7 million outstanding Denison shares.
Existing IUC and Denison shareholders will each own about 50 percent of the new company.
The combined company will be called Denison Mines Ltd. and retain its listing on the TSX. Denison CEO Peter Farmer will remain chief executive of the new company, while IUC boss Ron Hochstein will become chief operating officer and president.
Both companies' boards are backing the deal, which is conditional on shareholder votes. Special shareholder meetings for each company are expected to be held in mid-November, with the deal expected to close a month later.
I heard some rumours about this and now it's been finalized just like that. There is a uranium merger frenzy going on right now so I think being invested in the sector is a must.
By the way, because the merger won't close until sometime in December, don't think that this is over. I would be very surprised if somebody else didn't come up with a higher offer or some rebel shareholders decided the deal was undervalued and would try to get a higher price by pushing the share price higher than the set merger price.