Kalahari reveals £756m takeover talks with Chinese-owned uranium business

Marion Dakers
KALAHARI Minerals yesterday revealed that it was in discussions with Chinese state-owned CGNPC Uranium Resources about a possible takeover, sending its shares to an all-time high.

Namibia-focused Kalahari released a statement yesterday morning saying it was in early-stage talks, but brought out another statement after the markets closed with details of the suitor and the possible bid.

Kalahari said CGNPC’s possible offer comprised of 290p per share in cash, valuing the firm’s fully-diluted share capital at around £756m.

Kalahari’s Aim-listed shares soared 13 per cent to an all-time high of 293.5p after the first statement, before closing 9.5 per cent up at 285p.

CGNPC’s interest is “in line with its ongoing strategy to support development of important new sources of natural uranium supply” for China, the statement said.

Though a firm offer has not yet been made, the firms have set up break fees and said any bid will be recommended to shareholders by the Kalahari board.

Kalahari said it was also in talks to simplify its shareholder structure with Extract in a bid to combine assets with Rio Tinto in Namibia.

The company wants to combine Extract’s Husab Uranium project with the neighbouring Rossing Uranium mine owned by Rio Tinto.