July 12 Uranium Stocks Update: Paladin Resources (TSE:PDN)
Paladin officially announced their A$174 million ($130 million) bid for Valhalla Uranium Ltd.
The company is offering one share for every 3.16 Valhalla shares, valuing the company at A$1.45 a share, or 41 percent above the average price of the shares over the past 20 trading days. Valhalla directors recommended shareholders accept the bid in the absence of a higher one.
Of course, Summit Resources owns half of the Valhalla and Skal deposits and it was expected that they would have major objections at being overridden by Paladin on their Joint Venture (JV) with Valhalla. However, Summit has already come out with a terse statement stating that, pending legal consultation, Paladin did not trigger any pre-emptive rights in the original JV agreement between Summit and Valhalla. It is an admission of sorts that this deal will most likely go through successfully.
The company is offering one share for every 3.16 Valhalla shares, valuing the company at A$1.45 a share, or 41 percent above the average price of the shares over the past 20 trading days. Valhalla directors recommended shareholders accept the bid in the absence of a higher one.
Of course, Summit Resources owns half of the Valhalla and Skal deposits and it was expected that they would have major objections at being overridden by Paladin on their Joint Venture (JV) with Valhalla. However, Summit has already come out with a terse statement stating that, pending legal consultation, Paladin did not trigger any pre-emptive rights in the original JV agreement between Summit and Valhalla. It is an admission of sorts that this deal will most likely go through successfully.
posted by Spelunca at 11:44 PM
1 Comments:
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