IsoEnergy to buy Consolidated Uranium amid clean energy demand boom (updated)

IsoEnergy (Pre-Reincorporation)

27/09/2023 12:58

(Updates with IsoEnergy's ownership detail in paragraph 3)
       Sept 27 (Reuters) - 
    Canadian uranium miner IsoEnergy  ISO.V  said on Wednesday
that it would buy all the shares of Consolidated Uranium  CUR.V 
it does not already own in an all-stock deal, valuing the
combined company at C$903.5 million ($667.9 million).
    The deal is expected to close in the fourth quarter of this
year, post which Consolidated Uranium shareholders would own
29.5% of the combined company, while the rest will be held by
IsoEnergy.
    Consolidated Uranium said in a statement to Reuters that
IsoEnergy owns around 900,000 shares or about 1% of the company.
    Uranium prices are trading around $66.25 a pound, their
highest since the 2011 Fukushima disaster, as mounting worries
over climate change accelerate a global shift to cleaner sources
of energy, including nuclear power.
    A push to improve energy security, particularly after
Russia's invasion of Ukraine upended global oil markets, has
also stoked demand, while supplies remain constrained.
    Consolidated Uranium shareholders would receive 0.500 of a
common share of IsoEnergy for each share held.
    The deal values entire Consolidated Uranium at C$240.7
million or C$2.405 per share, representing a premium of 26% to
the stock's last close, as per Reuters calculations.

($1 = 1.3532 Canadian dollars)

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Varun H K)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))