* All stock deal valued at 84 mln pounds, or C$140 mln
* Boards of both companies approve transaction
TORONTO Jan 11 Uranium Participation Corp (UPC)
(U.TO), an investment holding company, said on Monday it will buy
Uranium Ltd UML.L in an all-stock deal valued at about 84
million pounds (C$140 million).
Under the terms of the agreement, the holders of Uranium
Ltd shares will receive 0.50 of one UPC Share for each Uranium
Ltd share held. The transaction values each Uranium Ltd share
at 204.3 pence, or C$3.38, based on UPC's closing price on
Toronto-based UPC said the offer represents a 27.7 percent
premium to Uranium Ltd's closing price on London's AIM market.
The acquisition of Uranium Ltd, which holds 1.7 million
pounds of uranium oxide, allows UPC to acquire additional
uranium at an attractive price relative to both its historic
average cost and its outlook for the long-term price, said UPC
in a statement.
The boards of both companies have have unanimously approved
(Reporting by Euan Rocha; Editing by Derek Caney)