Rio Tinto makes bid for Vancouver uranium exploration firm
Global mining giant Rio Tinto plc (LSE:RIO) tendered October 19 an all-cash offer for Hathor Exploration (TSX:HAT), valuing the company at $578 million. The deal trumps a hostile takeover attempt made by Saskatoon-based Cameco (TSX:CCO) worth $520 million announced in August.
On November 14, Cameco made an amended offer which Hathor said it will review.
At stake for Rio Tinto and Cameco is the Roughrider uranium deposit in Saskatchewan’s Athabasca basin, estimated to have 60 million pounds of uranium available to be mined.
AltaGas to acquire Pacific Northern Gas
Calgary-based AltaGas (TSX:ALA) has entered into a definitive agreement to acquire Vancouver-based Pacific Northern Gas Ltd. (TSX:PNG) for $230 million.
AltaGas plans to buy PNG’s shares for $36.75 per share, which represents a 28% premium based on the volume-weighted average trading price for the 20 days prior to the deal’s announcement on October 31.
The total value of the deal includes the assumption of $85 million in debt and $5 million in preferred shares. The $140 million cash required to purchase the shares will be funded by AltaGas’ existing credit facilities and cash on hand.
The deal will increase AltaGas’ regulated rate base to over $500 million and increase its number of customers by 47% to 110,000 from 75,000.
The deal is expected to close December 16.
CanWel to acquire lumber pressure-treating plant
Vancouver’s CanWel Building Materials Group Ltd. (TSX:CWX) has entered into a non-binding letter agreement to acquire the lumber pressure-treating plant and related equipment of NorthWest Wood Preservers.
The value of the deal was not announced but CanWel said it will pay for the Prince George plant using cash from existing credit facilities.
The deal will increase the company’s own pressure treatment capacities to include four treating plants and numerous distribution centres across Canada.
The deal is expected to close in the fourth quarter of 2011. •
