Saskatchewan offers Cameco shares

Nearly two months after the initial public offering of Cameco (TSE) shares, the Saskatchewan government has announced plans to sell shares of the uranium producer.

Saskatchewan has made arrangements with a group of underwriters to sell 5.3 million special warrants for $14.75 each, entitling the holder to a unit consisting of one Cameco common share and one-half of a common share purchase warrant. One full purchase warrant allows the holder to acquire one common share at $14.75 until Oct. 1, 1994.

All of the shares involved in the transaction are held by Saskatchewan Mining Development Corp. (SMDC), a unit of the province of Saskatchewan. Cameco has 51.9 million shares outstanding. When the transaction is complete, but not before the warrants are exercised, the province of Saskatchewan will own 20.2 million shares representing 38.9%, the federal government will own 16 million shares or 30.8%, and the public 15.7 million or 30.3% Before 20% of Cameco’s shares were offered to the public in July, the Saskatoon, Sask., company was held 61.5% by the Saskatchewan government and 38.5% by the federal government.