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- Silex Systems (SLX) has released an update on its U.S. regulatory approval process for its joint purchase of GE-Hitachi Global Laser Enrichment (GLE)
- An agreement was signed between Silex, Cameco Corporation and GE-Hitachi Nuclear Energy (GEH) to buy GEH’s 76 per cent interest in GLE
- Once the deal is completed, Silex will own a 51 per cent interest in GLE and Cameco will increase its stake to 49 per cent
- The agreement will need to be signed off on by the U.S. Government, with the latest filing in the long process occurring in October
- Since then, Silex has been advised by the U.S. Treasury Department it can expect a result by January 18, 2021
- If the outcome from their review is positive, and other approvals are also signed-off, SLX believes the deal could close shortly after
- Shares in Silex Systems are trading up 15.6 per cent at 74 cents each
Silex Systems (SLX) has released an update on the U.S. regulatory approval process for its purchase of GE-Hitachi Global Laser Enrichment (GLE).
The platform technology company said if all goes to plan, it could finalise the joint deal in January next year.
GLE deal
The deal in question relates to a joint agreement between Silex, Cameco Corporation and GE-Hitachi Nuclear Energy (GEH) which was signed in late 2019.
Both companies have both agreed to buy GE-Hitachi’s 76 per cent interest in GLE, with Silex to walk away with a ruling 51 per cent interest and Cameco to increase its stake from 24 per cent to 49 per cent.
The agreement is contingent on being signed off on by the U.S. Government, which has a long, multi-stage approval process.
Application process
The primary application was first submitted for approval by the U.S. Nuclear Regulatory Commission (NRC) in February 2020, while the latest filing occurred in October for separate approval by the U.S. Department of Treasury.
The Treasury Department has since advised Silex that its review into the transaction should wrap up by January 18, 2021.
The company said if the outcome is positive, and other approvals are also signed-off, then the long-running deal could finally reach completion shortly after this date.
Silex shares have jumped 15.6 per cent following the release of today’s approval process update, trading at 74 cents each at 12:38 pm AEDT.
