July 15, 2010 / 9:25 PM / 8 years ago

UPDATE 1-Uranium One recommends stake sale to Russia's ARMZ

July 15 (Reuters) - Canada’s Uranium One UUU.TO said its board and a panel of independent directors approved the sale of a controlling stake in the company to Russian state-owned miner ARMZ in exchange for stakes in two mines in southern Kazakhstan.

ARMZ would sell its 50 percent interest in the Akbastau uranium mine and its 49.67 percent interest in the Zarechnoye uranium mine to Uranium One, which owns assets in Kazakhstan, the United States and Australia. [ID:nN08246560]

ARMZ will also contribute $610 million in cash, of which at least $479 million will be paid directly to Uranium One shareholders as a change-of-control premium after closing, by way of a special dividend of at least $1.06 a share.

Uranium One said its board had recommended that shareholders of the company vote in favour of the transaction at a special meeting of shareholders to be held in Vancouver, British Columbia, on Aug. 31.

Shares of the company closed at C$2.83 Thursday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Unnikrishnan Nair)

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