Chinese nuclear firm offers $2.2 bn for Australian uranium miner Extract

China Guangdong Nuclear Power Corp (CGNPC) today said that it would offer $2.2 billion for Australia's Extract Resources if its proposed $993 million deal to buy the uranium miner's biggest shareholder, Kalahari Minerals, succeeds.

CGNPC, China's second largest nuclear power plant developer, which is looking for new sources of uranium supply, yesterday launched a $993 million bid for Kalahari in order to gain control of the world's fifth-biggest uranium deposit in Namibia.

CGNPC wants to buy Kalahari to get its 42.7-per cent stake in Extract, which owns the Husab uranium mine in Namibia, and CGNPC's bid for Kalahari is conditional on at  least 50 per cent of the miner's shareholders accepting its offer (See: China Guangdong Nuclear launches $993-mn bid for Kalahari Minerals).

The Australian regulators have said that should CGNPC's bid for Kalahari succeed, the Chinese state-owned nuclear power developer must offer A$8.65 a share or $2.2 billion for Extract.

Under Australia's stock exchange rules, CGNPC would have to make a full offer for Extract if it acquires more than 20 per cent of its shares.

Perth-based Extract today said that CGNPG would be required to make an $8.65 per share to its shareholders, as it has received a ruling from the Australian Securities and Investments Commission (ASIC).