January 11, 2010 / 2:04 PM / 9 years ago

UPDATE 1-UPC to buy Uranium Ltd for 84 mln stg

* All stock deal valued at 84 mln pounds, or C$140 mln

* Boards of both companies approve transaction

TORONTO, Jan 11 (Reuters) - 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 Friday.

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 the transaction. (Reporting by Euan Rocha; Editing by Derek Caney)

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