China Guangdong Nuclear launches $993-mn bid for Kalahari Minerals

China's state-owned nuclear power developer China Guangdong Nuclear Power Group Co (CGNPC) yesterday launched a £632 million ($993 million) takeover bid for Kalahari Minerals aimed at gaining control over the world's fifth-biggest uranium deposits, located in Namibia.

London-listed Kalahari Minerals said that it had agreed to CGNPC's offer of 243.55 pence per share, at a premium of around 16.1 per cent to the average closing price of 209.7 pence for the six months prior to and including 4 March - the last business day prior to the first announcement by CGNPC of a possible offer for Kalahari.

If the bid succeeds, CGNPC would automatically have the right to bid for Australian uranium miner, Extract resources, which is 42.7-per cent owned by Kalahari. Following  the approval for the deal from board of directors of Kalahari, the Chinese nuclear power developer today put in a bid for Extract  (See: Chinese nuclear firm offers $2.2 bn for Australian uranium miner Extract)

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-focused uranium producer Kalahari.

Following the earthquake in Japan, which resulted in major problems at the Fukushima Daiichi nuclear power plant, CGNPC renegotiated the price with the Kalahari board,  reducing its offer to £2.70 a share.

But the UK Takeover Panel ruled in May 2011 that CGNPC could not lower its indicative offer since the reduction of price was not allowed under UK takeover laws and CGNPC's original indicative offer did not say that it could alter the terms of the offer. (See: UK regulator rejects Chinese N-power firm's reduced bid for Kalahari Minerals)