Extract Resources calls shareholders to “take no action” regarding Chinese takeover bid

Australia’s Extract Resources Ltd. (ASX:EXT), owner of the world’s fourth-largest uranium deposit, advised shareholders to take no action regarding the $2.2 billion takeover bid from Chinese nuclear fuels supplier Guangdong Nuclear Power Corp (CGNPC).

Together with the China-Africa Development Fund and using Taurus Mineral Ltd as a subsidiary,Guangdonglaunched yesterday the cash bid for Kalahari Minerals PLC. If successful, the takeover offer could trigger a bid for Extract, in which Kalahari is the largest shareholder with a nearly 42.7 per cent stake.

In a press release, Extract explained that to be successful, CGNPG would be required to make an $8.65 per share offer to its shareholders, as it has received a ruling from the Australian Securities and Investments Commission (ASIC).

The company added that the offer was conditional on Kalahari extracting agreements for at least 50 percent of its shares. It holds letters of intent from investors for about 3.9 percent.

Loooking for partners

The Perth-based company is being said to have resumed talks with potential partners to help develop its Husab uranium deposit in Namibia, which has been estimated to cost about $1.7 billion, according to Bloomberg:

 “At no stage have we ever been restricted from talking to anyone, so we have continued to have those partnership discussions and we are going to be resuming those as a matter of urgency,” Jonathan Leslie, chief executive officer of Perth- based Extract, said in a phone interview from London today.

Shares in Extract Resources rose 38 cents, or 4.7 per cent to A$8.47 on Friday.

The complete release can be found at: http://clients.weblink.com.au/clients/extractresources2/article.asp?asx=EXT&view=6570854

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