Hathor Exploration Limited (TSE:HAT) (PINK:HTHXF) stock price became locked in a tight trading range as the company awaits to be sold.
HAT added roughly 11% over the last two sessions. The key price jump was recorded Wednesday morning when the stock gaped up in reaction to the news announcement.
Hathor said on October 19 they have received an acquisition offer from Rio Tinto (LSE:RIO) (NYSE:RIO) valued at C$4.15 per share and promised to be paid in cash. The share price obviously will stick to a level closed to the offered one until the agreement is finalized. The whole offer amounts to C$578 million. The offer also had to beat an unsolicited buyout proposal made by Cameco which amounted to C$3.75 per share.
The sale of the company will have to be approved by its shareholders, although the management has already entered into a lock-up agreement and will tenders all of their common shares to the Rio Tinto offer. 6.35 million, or roughly 4.6% of common shares are affected by the lock-up.
Hathor became an acquisition target for their uranium rich properties in Sasktchewan where Rio Tinto also commences business, with emphasis on the Athabasca Basin.
