By Stephen Nakrosis
Uranium Energy Corp. said Friday it has revised its offer to acquire UEX Corp., following a proposal made by Denison Mine Corp.
Uranium Energy and UEX said in June they had reached agreement on a deal which would see Uranium Energy acquire all outstanding common shares of UEX. Under the terms of that deal, UEX shareholders would receive 0.0831 of one Uranium Energy shares for each UEX share.
In July, Denison said it made a confidential proposal to acquire UEX, adding UEX reported that its board determined the Denison proposal to be a “superior proposal.”
Under the terms of Uranium Energy’s revised proposal, holders of UEX shares would receive 0.0890 of one common share of Uranium Energy for each UEX share. Uranium Energy also said its revised offer increases the break fee by 7%. The revised deal implies consideration of about C$0.49 per UEX Share based on recent closing prices, Uranium Energy said.
UEX Corp. stock closed the day’s trading on the Toronto Stock Exchange with a 2.13% increase, finishing the day at C$0.48 per share.
Amir Adnani, Uranium Energy’s president and chief executive, said, “after careful analysis and consideration, we firmly believe the Revised UEC Offer represents a value-creating opportunity for UEC and UEX shareholders.”
He also said the deal has garnered positive support “as evidenced with over 38% of eligible UEX securities tendered with over 93.7% voted in favor, and the positive share price performance for UEC.”
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