Rio Tinto sells its Kalahari stake to China's nuclear reactor builder CGNPC
02 February 2012
Anglo-Australian mining giant Rio Tinto has accepted a bid from China Guangdong Nuclear Power Corporation (CGNPC) for its 11.1-per cent stake in Kalahari Minerals, a stakeholder in world's fourth-largest uranium project.
CGNPC, China's second-biggest nuclear reactor builder, aims to acquire AIM-listed Kalahari for its 42.7 per cent interest in Australia's Extract Resources, owner of the Husab uranium project in Namibia.
State-owned CGNPC along with China Africa Development Fund had launched a £632-million ($993 million) takeover bid for Kalahari on 20 January. Prior to Rio Tinto's acceptance, shareholders holding 29.4 per cent of Kalahari accepted the offer.
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 Kalahari, the Chinese nuclear power developer also launched a $2.2 billion bid for Perth-based Extract. (See: Chinese nuclear firm offers $2.2 bn for Australian uranium miner Extract)
London-based Rio Tinto, which also holds 14.2 per cent of Extract Resources, said it would make a decision in due course on whether to accept any offer for its Extract shares.