Cameco (CCJ) to Acquire Nuclear Fuel Broker NUKEM in $136M Deal
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Cameco (NYSE: CCJ) has signed an agreement with Advent International to purchase NUKEM Energy GmbH (NUKEM), one of the world's leading traders and brokers of nuclear fuel products and services.
Under the agreement, Cameco will pay Advent and other shareholders EUR105 million ($136 million (US)) on closing subject to certain adjustments. Cameco will receive benefits of owning NUKEM and the obligation for the company's net debt of EUR127 million ($164 million (US)) as of January 1, 2012. As a result of cash generated from its ongoing business activities, NUKEM is expected to significantly reduce the balance of its debt prior to closing.
The agreement also includes provisions that would provide Advent with a share of NUKEM's future earnings under certain conditions until the end of 2014. The agreement is subject to regulatory approvals and is expected to close in the fourth quarter of 2012.
Following closing, NUKEM will continue to operate as an independent company.
Under the agreement, Cameco will pay Advent and other shareholders EUR105 million ($136 million (US)) on closing subject to certain adjustments. Cameco will receive benefits of owning NUKEM and the obligation for the company's net debt of EUR127 million ($164 million (US)) as of January 1, 2012. As a result of cash generated from its ongoing business activities, NUKEM is expected to significantly reduce the balance of its debt prior to closing.
The agreement also includes provisions that would provide Advent with a share of NUKEM's future earnings under certain conditions until the end of 2014. The agreement is subject to regulatory approvals and is expected to close in the fourth quarter of 2012.
Following closing, NUKEM will continue to operate as an independent company.
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