UK regulator rejects Chinese N-power firm's reduced bid for Kalahari Minerals
11 May 2011
China Guangdong Nuclear Power (CGNPC) yesterday withdrew its possible bid for uranium miner Kalahari Minerals after the UK regulator disallowed the Chinese state owned company to lower its indicative takeover offer.
The UK Takeover Panel dismissed an appeal filed by AIM-listed Kalahari Minerals, seeking approval for CGNPC's reduced takeover offer.
In March 2011, CGNPC, China's second largest nuclear power plant developer had made a £756 million ($1.2 billion) or £2.90 a share bid for Namibia-focussed uranium producer Kalahari Minerals.
Following the earthquake in Japan, which resulted in major problems at the Fukushima Daiichi nuclear power plant, CGNPC renegotiated with the Kalahari board and reduced its offer to £2.70 a share.
But the Takeover Panel ruled that CGNPC could not lower its indicative offer since the reduction of price was not allowed under the UK takeover laws and CGNPC's original indicative offer did not say that it could alter the terms of the offer.
Following the panel's ruling, CGNPC said that it was it no longer wished to make an offer on the terms announced in March as it was not interested in the acquisition, but reserved the right to make another offer after the mandatory six months following the panel's ruling.