Fission shareholder opposes acquisition

Paladin Energy’s proposed acquisition of Canada-based Fission Uranium Corporation has been delayed, following an objection from one of takeover target’s shareholders.

Last week, the uranium producer advised the market its takeover plans had been endorsed by Fission’s shareholders, with 67.9 per cent voting in favour: well clear of the 66.67 per cent threshold.

This securityholders meeting had been postponed from August 26, due to Fission having not received nearly half of the votes required.

Paladin also told shareholders last week the proposed acquisition, valued earlier this year at $1.25 billion, was subject to multiple closing conditions, including the attainment of a final order approval receipt from the Supreme Court of British Columbia.

The arrangement hearing, which began on September 13, has now been postponed until September 26 due to Fission shareholder CGN Mining Company Limited – a Hong Kong based company and subsidiary of China General Nuclear Power Corporation – opposing approval of the takeover arrangement.

Presently, CGN holds a disclosed 11.26 per cent stake in Fission.

As of 11.59am WST, Paladin shares were down 3 per cent to $9.07.