News: NGM recommends Paladin takeover offer

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Paladin Energy Ltd (ASX:PDN) is a step closer to taking over NGM Resources Ltd (ASX:NQM) with the NGM directors unanimously recommending shareholders accept Paladin's offer in the absence of a superior one.

In July Paladin offered one fully paid ordinary share for every 23.9 NGM shares.

An implied value of $0.15 per NGM share is based on the market price of Paladin and NGM shares on their last trading day before the offer was announced on 21 July.

NGM says the deal represents a significant premium to its share price and will allow shareholders to benefit from Paladin's broader portfolio of uranium projects in Australia and Africa.

Adding, that Paladin is a larger and more diversified company and has greater financial capacity to fund future growth.

Paladin Energy reported a net profit of $591.8 million for the year to 30 June 2009.