Toshiba, Tepco to buy stake in Canada's Uranium One

(Reuters) - Japan's Toshiba Corp 6502.T said on Tuesday that it, Tokyo Electric Power Co 9501.T and the Japan Bank for International Cooperation will together buy C$270 million ($221.9 million) worth of shares in Canada's Uranium One Inc UUU.TO.

The private placement issue price of C$2.30 per share represents a 15 percent premium to the 20-day volume weighted average price of Uranium One shares in Toronto.

The Japanese consortium, which will own 19.95 percent of Uranium One, also entered into an offtake agreement with the Canadian company.

The agreement provides the consortium with an option to purchase, on industry terms, up to 20 percent of Uranium One’s available production from assets. Uranium One will keep the marketing rights for the assets.

Toshiba shares closed down 1.9 percent at 256 yen, while TEPCO ended down 0.2 percent at 2,710 yen. The Nikkei average .N225 was down 0.3 percent.

Uranium One’s shares closed at C$2.O1 on Monday.

($1=1.217 Canadian Dollar)

Reporting by Ajay Kamalakaran in BANGALORE and Sachi Izumi in TOKYO, Editing by Ian Geoghegan