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.

Kalahari is an AIM- and NSX-listed resource company with uranium, gold, copper and other base metal interests in Namibia. The company has a 40-per cent interest in ASX-, TSX- and NSX-listed Extract Resources Limited and a 45-per cent interest in AIM-listed North River Resources plc.

Extract Resources' main asset is the Husab Uranium Project in Namibia, which has a current resource of 367 Mlb, establishing it as the fifth largest global uranium deposit.

Kalahari is interested in extensive copper and base metals projects through its controlling interest in North River Resources. Its Dordabis and Witvlei Projects in Zambia copper mines, while a third project, Ubib, is believed to be prospective for gold mineralisation and is nearby the operating Navachab gold mine.

North River, in tandem with Kalahari is also evaluating its highly prospective Namib Lead Zinc Project.