China Guangdong Nuclear Power Holding Acquires 70% Stake in Energy Metals (ASX:EME)

Australian uranium explorer Energy Metals (ASX:EME) has entered into an agreement with China Guangdong Nuclear Power Holding Co., or CGNPH, which offered A$83.6 million for control in Energy Metals.

State-owned CGNPH will acquire 70% of the outstanding ordinary shares in the Australian miner for A$1.02 cash per share. The offer price represents a 60% premium to the 3 month volume weighted average price of Energy Metals shares up to 26 August 2009.

Energy Metals has a portfolio of eight undeveloped uranium properties covering 4,000 square kilometers in Australia's Northern Territory and Western Australia.
CGNPC has also agreed to underwrite an A$11.7 million 1-for-9 rights issue at 90 cents a share. It will end up with 73% of the company if no other shareholders participate.

The Energy Metals directors unanimously recommend shareholders accept the bid in the absence of a superior proposal being received, the company said in a statement.

The offer is subject to the approval of shareholders, the Australian Foreign Investment Review Board and Chinese regulators.


Related Companies

Energy Metals Ltd