Paladin Energy Ltd (ASX:PDN) has provided an update on the potential sale of Langer Heinrich Mine.
Paladin has referred to its previous announcements regarding a potential option in favour of CNNC Overseas Uranium Holding Ltd (CNNC) which, if validly exercised, could entitle CNNC to acquire Paladin’s 75% interest in the Langer Heinrich Mine.
- The independent expert has determined that the Fair Market Enterprise Value of Langer Heinrich Mauritius Holdings Limited is approximately $US583M, resulting in a Fair Market Value for Paladin Finance Pty Ltd’s (administrators appointed) (Paladin Finance) 75% shareholding in the capital of Langer Heinrich Mauritius as at the date of service of the appraisal notice by CNNC (March 8, 2017) of approximately US$170M.
As announced on 5 May 2017, under the terms of the shareholders’ agreement a 5% discount to the Fair Market Value applies, meaning Paladin Finance would receive approximately US$162M for its shares.
- Paladin Finance has interest bearing loans outstanding to Langer Heinrich Uranium (Pty) Limited with a face value of approximately US$254M at 30 June 2017.
- If CNNC were to exercise its potential option and to acquire the interest bearing loans, subject to receipt of consents, Paladin Finance would ultimately be entitled to receive approximately US$416M, depending on interest accrued and any other changes in loan amounts or capital structure up to the date of payment.
The company said whilst the independent expert’s valuation is final, Paladin is currently in the process of reviewing the valuation for errors and continues to consider the validity of the potential option.
Under the potential option, CNNC has 30 days from 20 July 2017 to issue a notification of exercise to Paladin Finance.