Russia's state-owned ARMZ Uranium plans to acquire Australian Uranium Explorer Mantra Resources (MRU.AX:) for $1.15 billion in cash to add to its portfolio of African uranium assets, Australia-based Mantra said on Wednesday.
* ARMZ bids A$1.16 bln (US$1.15 bln) for Mantra
* ARMZ A$8 per share bid is 15.1 pct above 20-day avg
* Mantra's Tanzania project holds 101.4 mln pounds uranium
* Mantra's board recommends shareholders accept offer
Its board recommended that shareholders accept ARMZ's bid.
Mantra's principal asset is the Mkuju River Project in Tanzania, which holds 101.4 million pounds of uranium. "Mantra's flagship asset, the Mkuju River Project, is a world class deposit," ARMZ Director General Vadim Zhivov said.
"We believe Mantra will complement our portfolio of assets and is consistent with our stated strategy of acquiring low cost, long life, geographically diverse assets."
ARMZ, part of the Rosatom state nuclear agency, has offered A$8.00 per share, or A$1.16 billion, for the firm, 15.5 percent above its 20-day average price on the Sydney exchange.
The world's fifth largest uranium producer has most of its operations in Russia and Kazakhstan, and it is in the midst of an aggressive expansion drive as it seeks to tap growing demand for the nuclear fuel.
Last month it gained final approval for a $610 million offer that allows it to raise its stake in Canada's Uranium One (UUU.TO:) to 51 percent, which has assets in Kazakhstan, the United States and Australia. [ID:nN24218636] ARMZ entered the African market in 2008 when it formed the SWA Uranium Mines joint venture in Namibia.
The company's offer for Mantra is equal to $10.26 per pound of resource, and it is subject to an implementation agreement that is expected to conclude in April.
