areva-thwarts-paladins-bid-for-summit

Areva thwarts PaladinÆs bid for Summit

The French nuclear group agrees to buy an 18% stake in AustraliaÆs Summit Resources, foiling a planned takeover by rival Paladin.

By Cherie Marriott

April 11, 2007

French uranium miner and marketer Areva has agreed to invest up to A$292.6 million $240 million in AustraliaÆs Summit Resources which manages and operates a large uranium mining project in Queensland.

The investment will be made in two instalments, with Areva initially buying a 9% stake at a price of A$6.20 per share for a cash injection of A$121.1 million. Within six months, Areva can increase this stake to 18% by subscribing to another lot of shares at A$7.20 each for a total of A$171.5 million in cash.

Once the second investment is made, Areva gains the right to market two-thirds of the uranium that Summit produces at its Mount Isa mine û a mine...

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