Published 7:44 AM, 12 Dec 2011 Last update 7:44 AM, 12 Dec 2011 Extract Resources, Kalahari Minerals, China Guangdong Nuclear Power
Extract Resources boss Jonathan Leslie is ending 2011 on a high of sorts, with a $2.2 billion takeover offer on the horizon if all goes well. Extract’s largest shareholder, the UK’s Kalahari Resources, has finally received a £632 million ($A979 million) offer from China Guangdong Nuclear Power following two periods of discussions and ongoing speculation that has lasted almost all year. Kalahari’s 43 per cent shareholding in Extract triggers a $2.2 billion downstream takeover offer for Extract, if Guangdong can get a majority stake in Kalahari.
The prize for Guangdong is Extract’s Husab uranium deposit in Namibia, which has been touted as the fourth largest in the world. But the lingering presence of Rio Tinto on the registers of both Extract (14 per cent) and Kalahari (11 per cent) will be an interesting detail to watch, particularly given that Rio’s Rossing uranium mine neighbours Husab and the Australian miner has just purchased another uranium hopeful, Canada’s Hathor Exploration, for $C654 million ($642 million).
EXT Price at posting:
$8.52 Sentiment: Buy Disclosure: Held
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