DJ Kalahari Minerals Sees CGNPC-URC Offer On Track LONDON (Dow...

DJ Kalahari Minerals Sees CGNPC-URC Offer On Track

LONDON (Dow Jones)--Uranium miner Kalahari Minerals PLC (KAH.LN) believes that state-owned China Guangdong Nuclear Power Uranium Resource Co. Ltd., or CGNPC-URC, is continuing efforts to make a firm bid for the company, said Executive Chairman Mark Hohnen Tuesday.

Doubt was raised about the offer following Japan's recent nuclear crisis, which rattled uranium stocks worldwide.

A spokesperson for Kalahari told Dow Jones Newswires that the offer price remains unchanged and CGNPC-URC is continuing to satisfy the pre-conditions before the May 3 deadline.

A spokesperson for CGNPC-URC wasn't immediately available for comment.

The offer, announced March 7, comprises a 290 pence per share bid, valuing Kalahari's fully diluted share capital at GBP756 million, including shares attributable to options and convertible loan notes.

The offer is subject to a number of pre-conditions including regulatory clearances from the authorities in China and Australia as well as finalizing the financing to the standards required by the City Code.

Kalahari's board still intends to recommend that Kalahari's shareholders accept such an offer.

Daniel Stewart analyst Martin Potts said: "We are of the opinion that the discount between the indicated price of 290p and the current price of 233.5p is too large."

Singer Capital Markets analyst Charlie Long said: "We continue to believe that the Chinese will not be diverted from their move towards nuclear energy by events in Japan, but would not rule out a change in the offer price for Kalahari and ultimately Extract."

Long has a "Fair Value" rating on the stock and a 290 pence target price.

Shares at 0826 GMT up 5.25 pence, or 2.25%, at 238.75 pence in a slightly lower Alternative Investment Market--down 0.03 pence.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected]


(END) Dow Jones Newswires

April 05, 2011 05:02 ET (09:02 GMT)