energy
Russian ARMZ to gain control over Uranium One in exchange for cash and mines
(SRI) - Kazakhstan-focused miner Uranium One said on Tuesday that Russia’s Atomredmetzoloto (ARMZ) would acquire a controlling stake in the Canadian company in exchange for stakes in two mines in Kazakhstan and $610 million in cash.
ARMZ, a unit of Russia’s state-owned nuclear company Rosatom, will acquire 356 million new shares of Uranium One to raise its holding to at least 51 percent from current 23 percent, Uranium One said in a statement.
Uranium One had already acquired a large minority stake in Uranium One last year, in exchange for a 50-percent stake in the Karatau uranium mine in Kazakhstan.
As part of the current deal, ARMZ will give Uranium One its 50 percent interest in the Akbastau uranium mine and its 49.67 percent interest in the Zarechnoye uranium mine in southern Kazakhstan. Kazakhstan’s state-run Kazatomprom owns the other 50 percent of the Akbastau mine and 49.7 percent of Zarechnoye.
Uranium One, whose shares are listed on the Toronto Stock Exchange (TSX), said it will pay a special cash dividend of at least $1.06 a share to minority investors when the deal is completed.
“We’ll use Uranium One as a platform for growth,” Bloomberg quoted Sergei Kiriyenko, the CEO of Rosatom, Russia’s national nuclear holding, as saying.
The deal, which may be completed this year, is subject to regulatory approval in Kazakhstan, the U.S. and Canada, said ARMZ.
BMO Capital Markets is advising Uranium One on the deal and Goldman Sachs is advising ARMZ.
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