Canadian Manufacturing

Cameco, CPP Investment Board decline comment on reported interest in Urenco

British newspaper says Canadian pair just two of several groups interested in buying firm



TORONTO—There are reports that Canadian uranium giant Cameco Corp. and the Canada Pension Plan Investment Board could be among those interested in buying a stake in Urenco, a European nuclear fuel maker.

The Sunday Times newspaper, which cited unidentified sources, said they were among several groups with some interest in buying Urenco, which is jointly owned by the British and Dutch governments and two German utility companies.

The newspaper said it was told by sources close to the situation that the Dutch government has dropped its opposition to a sale on condition that strict controls be established, including the its right to a “golden share.”

The term golden share usually refers to a share that can be used to override other shareholders in certain circumstances.

Neither the Toronto-based pension fund manager nor the Saskatoon-based uranium company would comment on the London-based paper’s report, which said Morgan Stanley has been engaged to handle the sale.

Urenco, based in England, is a leader in uranium enrichment—making fuel for nuclear power stations.

Cameco is also active in uranium processing as well as mining and is part owner of the Bruce Power nuclear power operation in southwestern Ontario.

The Canada Pension Plan Investment Board has numerous holdings in Britain and other countries.

The funds it manages will eventually be used to supplement employer and employee contributions to the Canada Pension Plan.

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