CGNPC may relaunch bid for Kalahari

City A.M. Reporter
STATE-OWNED China Guangdong Nuclear Power (CGNPC) is studying whether to come back in three months with a fresh bid for uranium miner Kalahari Minerals, after withdrawing an offer following opposition from UK regulators.

“Our business department is studying it. We don’t have a result yet,” said a CGNPC spokesman.

CGNPC had withdrawn its bid for Kalahari after the Takeover Panel said it would not allow the Chinese company to lower its £756m offer. CGNPC hoped to cut its bid in light of uncertainty in the uranium industry following Japan’s nuclear problems.

Shares in Kalahari and its 43 per cent-owned Australian-listed Extract Resources fell on the decision, although some analysts said they expected CGNPC could return with a fresh offer in the next three to six months or bid directly for Extract.

“We think there is a reasonable chance CGNPC will make a new bid for Kalahari after three to six months have elapsed, or CGNPC may be more direct and make a bid for Extract,” RBC analyst Adam Schatzker said.

CGNPC must wait three months before returning with a revised bid under UK regulations.

State-owned CGNPC made an informal move on Kalahari in March.