trading

  1. 4,941 Posts.
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    I am very surprised that, with UEL and ALN both in pre-open, pending the outcome of today's XGM, that UEC was not, itself, also placed into pre-open.

    UEC is 66.5% owned by UEL and, in the event of the Scheme of Arrangement being approved by UEL's public shareholders, today, will become 66.5% owned by ALN (at least, for the foreseeable future).

    The problem, however, is that several institutional shareholders, including JB Were have opposed the Scheme of Arrangement. Today's XGM outcome, therefore, is not yet assured, although it could well be (ie: decided in the affirmative).

    Trading in UEC has ranged today between 23.5-23-26c, with the more cosistent range being between 23.5 and 26c. Clearly, much of this trading has been in anticipation of the outcome of the XGM.

    With UEC clearly singled out and commented upon at large, both in the Scheme of Arrangement documentation, and by each of the 3 listed companies (ie: ALN, UEL and UEC), the proper and prudent course of action for today would have been for UEC to also have been placed into pre-open.

    From a corporate governance, continuous disclosure, and shareholder transparency perspective, that would have been the sensible thing to do. Instead, today's buyers of UEC will either end the day ahead, or behind on their investments (and by a significant margin).
 
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