What is driving the upswing of Silex Systems (ASX:SLX) shares?

Summary

  • Silex Systems is inching closer to complete the acquisition of GLE, as it is expecting to receive the approval from the government agencies soon. SLX shares are up over 30% today.
  • The company will have a majority stake in the joint venture after the completion of the transaction. 

Silex Systems Limited (ASX:SLX) announced today that transaction approval for the GE-Hitachi Global Laser Enrichment (GLE) might arrive soon. 

In December 2019, the company, Cameco Corporation, and GE-Hitachi Nuclear Energy entered into a Membership Interest Purchase Agreement (MIPA). The agreement was executed for the joint purchase of 76% interest in GLE held by GE-Hitachi Nuclear Energy. 

Source: SLX AGM Presentation, 15 October 2020

After necessary approvals and completion of the transaction, Silex Systems would have a 51% interest in GLE, and Cameco would own the rest. 

Related: Silex's Stock Skyrocketed On ASX After Signing New Term Sheet With GE-Hitachi

The transaction requires many approvals, including a nod from the US Nuclear Regulatory Commission (NRC). Silex had applied to NRC in February 2020. 

It further added the transaction requires multistage, multiagency approvals and also involves several significant fillings. 

The company’s last application was filed with the US Department of Treasury-Committee on Foreign Investment in October 2020. 

Source: SLX AGM Presentation, 15 October 2020

The concerned department has notified the company that the investigation into the transaction would be completed by 18 January 2021. 

After a decision from the US Department of Treasury-Committee on Foreign Investment and other necessary approvals, Silex expects to complete the transaction. 

At the time of writing, SLX was trading at $1.575, up by 35.77% from the previous close.

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