Cameco is now a purer play on uranium, with $872-million in its coffers, as the company finally parts with a minority stake in Centerra Gold.
In a move that was long expected, Cameco sold its remaining 88.6-million-share stake in Centerra to a syndicate of underwriters led by CIBC World Markets and RBC Dominion Securities.
The bought deal played out at $10.25 a share, a substantial 8.4 per cent discount to where shares in Canterra last traded on the TSX, and a 24 per discount to the average price over the past five days. Gold stocks are nothing if not volatile, and that's behind the gap between where Centerra has traded, and where this deal played out. Centerra trading was halted before the stock sale was announced.
Cameco first started to spin out Centerra back in 2004. There's a school of thought that says the uranium company would have been well advised to sell the entire position years ago, as Centerra and its collection of Asian mines have been a distraction for Cameco management.
This bought deal features a large cast, but the two lead dealers will take the bulk of the fees. CIBC World Markets and RBC Dominion are each in line for 27 per cent of the fixed commissions on the deal, which will see Cameco pay a 4 per cent fee.
BMO Nesbitt Burns gets 16 per cent of the pie. Scotia Capital is at 5.5 per cent, then five dealers get 3.5 per cent: HSBC Securities, Morgan Stanley, National Bank Financial, TD Securities and UBS Securities. There are seven dealers in line for a 1 per cent fee.