Kalahari back in talks with Guangdong

Elizabeth Fournier

HARI Minerals confirmed yesterday that offer talks had resumed with state-owned China Guangdong Nuclear Power Corp.

CGNPC is expected to relaunch its 270p a share offer, valuing the uranium miner at about $1bn (£638m), following a temporary ban imposed by UK regulators.

CGNPC was in talks in March to buy Kalahari for 290p a share. In the days following the earthquake and nuclear disaster in Japan, the companies agreed CGNPC could cut the price to 270p, but they failed to persuade UK regulators and CGNPC was forced to withdraw its informal bid.

Since more than three months have elapsed since CGNPC announced the withdrawal of its possible offer, it is no longer restricted into making an offer on the same or better terms than those in its original potential offer, Kalahari said yesterday.

Kalahari also said it had waived another UK Takeover Panel code that had restricted the Chinese group from announcing an offer before 11 November.

Kalahari holds a 43 per cent stake in Extract Resources, owner of the Husab project in Namibia, which is potentially the second-largest uranium mine in the world.

Shares in Extract Resources surged more than 10 per cent in Australia yesterday on expectations it may also get a takeover offer from CGNPC.