Deloitte backs Vimy-Deep Yellow merger

Deloitte backs Vimy-Deep Yellow merger

Deloitte has found Deep Yellow’s offer is fair Finance > M-a

The all-scrip deal, announced in March, would see the issue of 0.294 Deep Yellow shares for every Vimy Share, which would see Vimy shareholders own 47% of the merged group.

Deloitte estimates a fair value for Vimy of A20-28c.

At the time the deal to create one of the world’s largest uranium resource owners had an implied value of 28.5c per Vimy share. It raised $17 million at 17c just before the marriage was agreed to.The markets have proven volatile since the merger was announced, with the spot uranium price peaking at US$64.50 per pound and falling about 26% to a current level around $48/lb, with the shares of both uranium juniors also declining.Its fair value for the expanded Deep Yellow is between A69-92c.Deloitte noted that Deep Yellow’s shares have been particularly impacted because of its dependency on a […]

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