Cameco Corp (NYSE: CCJ) shares are trading lower Wednesday after the company announced a $650 million bought deal offering.
The underwriters in the offering have agreed to purchase, on a bought deal basis, 29,615,000 common shares of Cameco at $21.95 per share. Cameco expects gross proceeds of approximately $650 million.
The offering is expected to close on or about Oct. 17. Cameco plans to use the proceeds to partially fund its share of the acquisition of Westinghouse Electric Company, which was also announced on Wednesday.
Cameco has formed a strategic partnership with Brookfield Renewable Partners (NYSE: BEP) in which the companies will acquire Westinghouse Electric. Following the acquisition, Brookfield Renewable will own a 51% stake in Westinghouse Electric and Cameco will own 49%.
"The opportunity to partner with Brookfield Renewable, a leader in the clean-energy space, to acquire Westinghouse is expected to create a platform for growth across the nuclear value chain," said Tim Gitzel, president and CEO of Cameco.
Cameco is one of the world's largest uranium producers. The company is set to report third-quarter financial results before the market opens on Oct. 27.
CCJ Price Action: Cameco has a 52-week high of $32.49 and a 52-week low of $18.03.
The stock was down 15.6% at $21.81 Wednesday afternoon, according to Benzinga Pro.
Photo: courtesy of Cameco.
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