UEX eyes best day in over 4 years on buyout by Uranium Energy

DongKook Pharmaceutical

13/06/2022 15:28

** Shares of Canada-based uranium and cobalt exploration co
UEX Corp  UEX.TO  soar 24.6% to 36 Canadian cents; set for best
day since March 2018, if gains hold
    ** U.S.-based uranium miner Uranium Energy Corp  UEC.A  says
it will acquire UEX in an all-stock deal valued $182.04 mln
    ** Cos say the deal will create the largest diversified
N.American focused uranium company and will expand UEC's
portfolio to a politically stable, mining friendly jurisdiction
    ** Deal valued at 33 cents/shr (43 Canadian cents/shr)
implies premium of almost 51% to UEX's closing price on Friday
    ** Deal expected to close in Q3 2022, after which, UEC
shareholders will own about 86.3% of UEC, while UEX shareholders
will hold the remaining 13.7%
    ** In Nov, UEC had bought Uranium One Americas Inc for $112
mln in cash  urn:newsml:reuters.com:*:nL4N2S033A
    ** UEC shares down 12.8% at $3.50 amid a broader market
sell-off
    ** UEX stock has fallen 23% YTD through Friday's close; UEC
has gained 20%

(1 Canadian dollar = $0.7778)

 (Reporting by Ruhi Soni in Bengaluru;)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))