KEPCO to Take Management Control of U.S. No. 2 Uranium Developer

 

According to investment banking sources on August 13, KEPCO's stake in Energy Fuels has increased to 9.1 percent from 8.5 percent as Energy Fuels took over Strathmore. In exchange for acquiring the 100-percent stake in Strathmore shares listed on both of the Toronto and New York stock exchanges, Energy Fuels promised to KEPCO to hand over its 1.47 shares for each Strathmore share held by KEPCO. According to this arrangement, KEPCO could add 0.6 percentage point shares in Energy Fuels in return for a 11.7-percent stake in Strathmore.

 

Earlier in February last year, the state-run electric utility became the largest shareholder in Strathmore by investing US$8 million, followed by an 8.5-percent stake investment in Energy Fuels in June in the same year. Once the merger is complete, the Strathmore shares listed on the Toronto and New York stock exchanges will be withdrawn. An investment banker said, "It will be easier for KEPCO to keep track of its investment once the two companies merge into one."