The Silex Systems Ltd (ASX: SLX) share price is sliding lower today on news the United States government has approved the restructure of GE-Hitachi Global Laser Enrichment (GLE).
At the time of writing, the nuclear energy technology developer’s shares are down 8.75% to $1.46.
The Silex share price has fallen today, despite the positive announcement. Could the share sell-down be due to investors already factoring in the outcome, which was first revealed on 8 January?
What’s driving the Silex share price today?
In today’s release, Silex advised it has formally received notice from the US Treasury Department Committee on Foreign Investment in the United States (CFIUS) to approve the transaction to restructure GLE.
The notice stated the CFIUS investigation found no national security concerns with the restructure. The latest approval now means that Silex has the go-ahead to proceed with its investment of GLE.
Silex will acquire a 51% stake, with uranium and nuclear fuel supplier Cameco to increase its interest from 24% to 49%.
As the deal draws close to being finalised, Silex, Cameco and GE-Hitachi Nuclear Energy (GEH) will shut down the membership interest purchase agreement (MIPA). Executed in December 2019, the joint agreement originally saw the purchase of GEH’s 76% interest in GLE.
It is expected that the closure of MIPA will be concluded in the next few weeks.
Words from the CEO
Silex CEO and managing director Dr Michael Goldsworthy welcomed the news, saying:
The receipt of approval from CFIUS for the GLE transaction represents a significant milestone for Silex and reflects the dedicated efforts by the Silex team, our colleagues at Cameco and GEH, along with many representatives within the US Government, and we thank everyone for their contribution.
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More reading
- Why the Silex (ASX:SLX) share price is soaring 25% today
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why is the Silex (ASX:SLX) share price sliding 8% today on positive news? appeared first on The Motley Fool Australia.
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