The board of Mantra Resources Ltd. has agreed to support a reduced takeover offer from Russian uranium producer JSC Atomredmetzoloto, which said last week the original price it had offered was too high in light of Japan's nuclear power crisis.
Mantra, headquartered in Perth, Australia, announced Monday that its board and a major shareholder have agreed to a revised offer totalling $7.02 (Australian) cash, down from $8 per share.
Atomredmetzoloto (ARMZ) would pay only $6.87 in cash directly while Mantra would pay its shareholders a cash dividend of 15 cents per share.
The revised offer also affects Vancouver-based Uranium One Inc. , which will have the right to buy Mantra from ARMZ at a reduced price. Uranium One will also have more time to buy Mantra than under the previous agreement.
Mantra's shares gained $1.35 (Canadian) or 25 per cent to $6.69 on the Toronto Stock Exchange after the announcement while Uranium One's share gained 34 cents to $4.27, an increase of nearly nine per cent from Friday's close.