Hathor Exploration Limited (TSE:HAT) (PINK:HTHXF) recently received another acquisition proposal which sent the stock price flying and established a pretty solid price floor protecting from sudden collapse.
On November 14 the company declared to have received an updated offer from Cameco Corporation to acquire all the outstanding stock of Hathor.
The company was offered $4.50 per share. The proposal was increased by 20% from the $3.75 suggested in late October. The current market price of $4.87 per share is 8.2% higher than the offer so it remains pretty clear that the management won’t be eager to settle for substantially less. The company also had an oustanding proposal from Rio Tinto, to be bought for $4.15, thus the premium had to be arranged by Cameco.
The offer had another important role to fulfill – it provided a sturdy support for traders as the company was bid to be worth at least $615 million. Hathor stock price increased nearly 160% over the course of one year and these buyout proposals are likely to push it up even further.
Hathor is very attractive to large uranium miners for their Roughrider project in Saskatchewan, which is currently expected to be able to produce in range of 5 million pounds of uranium per year.
