UPDATE 3-Russia's ARMZ to take Uranium One private for $1.3 bln

Mon Jan 14, 2013 5:54pm EST
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* Russia state company consolidating base in ex-Soviet Union

* Deal values Uranium One at $2.8 bln, C$2.86/share

* Shares close up 14.52 pct to C$2.76 on TSX

By Melissa Akin and Julie Gordon

MOSCOW/TORONTO, Jan 14 (Reuters) - Russia's state uranium company has agreed to pay C$1.3 billion (US$1.32 billion) to take Canada's Uranium One Inc private, as the successor to the Soviet Union's nuclear industry seeks to strengthen its grip on supplies.

Atomredmetzoloto and its Effective Energy N.V. affiliate - together known as ARMZ - said on Monday they would buy the shares of Uranium One they do not already own in a deal valuing Canada's No.2 uranium producer at C$2.74 billion ($2.8 billion).

The deal sent the stock up more than 14 percent on Monday to close at C$2.76 on the Toronto Stock Exchange. That was below the C$2.86 per share offer price, suggesting some uncertainty over the outcome.

ARMZ currently owns 51.4 percent of Uranium One's common shares. If successful, the full takeover would help ARMZ consolidate control over uranium assets in the former Soviet Union and also strengthen access to reserves in Australia and the United States.

It will also leave just two major publicly listed, pure-play uranium producers - Canada's Cameco Corp and France's Areva SA.   Continued...