bmn gets takeover offer from chinese buyer

Bannerman gets takeover offer from Chinese buyer

The Australian Financial Review
PRINT EDITION: 11 July 2011
Street Talk
Edited by Sarah Thompson

Uranium explorer Bannerman Resources' share price has almost halved this year after a wave of panic selling gripped the sector following Japan's nuclear power crisis.

The stock was further pummelled after Italy joined Germany and Switzerland last month in turning its back on nuclear power after a public referendum voted to rescind laws aimed at reviving Italy's nuclear industry.

Nonetheless, Bannerman's claim that it controls one of the world's largest undeveloped uranium projects hasn't gone unnoticed. It's believed a letter detailing a proposal to acquire 100 per cent of the company was sent to Bannerman on Friday.

Street Talk understands the cash offer is above 60c a share (the stock last closed at 38.5c) and that there is a scheme of arrangement so that the prospective Chinese buyer can have a look at Bannerman's books.

An announcement is expected today, and at this stage the purchaser is looking to get board agreement for its offer.

Bannerman, which is still some time off production, has fared worse in the sell-off than many of its its larger, more advanced peers such as Paladin and Energy Resources of Australia.

Its proposed Etango uranium project in Namibia is a high-cost venture with a budget of $US638 million ($593 million) before mining fleet and working capital expenses, and some quarters of the market have suggested the uranium is low grade.

http://www.afr.com/p/opinion/bannerman_gets_takeover_offer_from_8RJOLZ2YhFD3U4J4Thu3MI?hl