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Chinese withdraw bid for Kalahari Minerals

Historic first blast
at Extract’s Husab
project on 24 June,
London, England — ESI-AFRICA.COM — 11 May 2011 – China Guangdong Nuclear Power (CGNPC) has withdrawn its possible bid for Kalahari Minerals, scuppered by the Japanese nuclear crisis and a refusal by UK regulators to allow a lower offer.

State-owned CGNPC made an informal move on Kalahari in March “’ days before the Japanese earthquake “’ lured by access to one of the world’s biggest uranium deposits at a time when major powers are scrambling for alternative sources of power.

But, in the light of uncertainties following the Fukushima nuclear disaster, both sides agreed last week to lower the initial 290 pence per share offer to 270 pence.

The UK’s Takeover Panel, however, said it would not allow CGNPC to turn a higher, informal, offer, into a lower, formal bid. The panel’s hearings committee upheld that ruling, and after the market close, CGNPC said that, following the panel’s ruling, it no longer wished to make an offer on the terms announced in March.

Kalahari owns a 43% stake in Extract Resources, which owns the Husab uranium project in Namibia, potentially the second largest uranium mine in the world.