The bidding war for that has erupted for Canadian uranium exploration junior UEX is heating up, with Denison Mines improving its offer, leaving fellow-suitor Uranium Energy Company (UEC) disappointed with UEX delaying its shareholder vote. UEX shareholders would have voted on UEC’s bid on Tuesday, but the company’s board had moved that meeting to August 15, following Denison’s amended offer.
Denison has offered to acquire UEX for 0.32 shares for every UEX share held, representing an implied purchase price of C$0.51 a share. Denison states that the acquisition proposal represents a 7% premium to the price implied by the amended agreement between UEX and UEC, and a 9% premium to the 20-day volume weighted average price implied by the amended UEC agreement.
“Following the expiration of our previous acquisition proposal, which equated to a premium over the amended UEC agreement on a 10- and 20-day volume weighted average price basis, and after internal discussions, including with our legal and financial advisers, Denison decided to make a further premium acquisition proposal to UEX,” Denison president and CEO David Cates.
The success of the Denison offer is subject to the board of UEX determining that it is superior to the UEC agreement and is also subject to UEC’s five-day right to match.
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