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Monday, January 14, 2013

Russia's ARMZ to take Uranium One private for $1.3 bln, (TSE: UUU.TO)

Russia's state uranium firm has agreed to pay $1.3 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 affiliate Effective Energy N.V. - together known as ARMZ - said on Monday they would purchase the shares in 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).ARMZ, which along with affiliates currently owns 51.4 percent of Uranium One's common shares, will pay C$2.86 per share, a premium of 19 percent over the stock's Friday close.The C$1.33 billion deal will help ARMZ consolidate control over uranium assets in the former Soviet Union, and also strengthen access to reserves in Australia and South Africa.

Uranium One Inc., (Uranium One) along with its subsidiaries, is engaged in the acquisition, exploration and development of properties for the production of uranium in Kazakhstan, the United States, Tanzania and Australia. Shares of UUU remained unchanged at $2.41. In the past year, the shares have traded as low as $1.78 and as high as $3.45. On average, 5632920 shares of UUU.TO exchange hands on a given day and today's volume is recorded at 0.