Federal government to sell Cameco shares

The federal government intends to sell half its 19.2% interest in Saskatchewan uranium producer Cameco (TSE) for $102.5 million. Five million shares will be sold to the public at $20.50 per share by a group of underwriters led by investment dealers Burns Fry and RBC Dominion Securities.

The shares involved in the transaction are held by Canada Eldor, a corporation wholly owned by Canada Development Investment Corp., which itself is owned and operated by the federal government.

After the transaction closes on June 7, Cameco will be owned 38.9% by the Saskatchewan government, 51.5% by the public and 9.6% by the federal government.

At present, there are 52 million issued and outstanding shares of Cameco.