The offer price for Extract Shares under the Extract Bid ("Extract Offer Price") will be AUD8.65 cash per Extract Share.
The Extract Offer Price is the "see-through" (or "effective") price and is based on the implied value of Kalahari's shareholding in Extract (on a fully diluted basis), at the Offer Price of 243.55 pence.
An outline of the formula applied in setting the Extract Offer Price is set out in Appendix V.
In summary:
-- the implied value of Kalahari's shareholding in Extract (on a fully diluted basis) has been determined by:
-- calculating the implied value of Kalahari by multiplying the Offer Price by the number of Kalahari Shares in issue, as disclosed by Kalahari as at the date of this announcement;
-- adding to this, the intrinsic value of Kalahari options outstanding, as disclosed by Kalahari as at the date of this announcement;
-- subtracting from this implied value, the aggregate of: -- the value of Kalahari's interest in AIM listed North River Resources plc based on the closing sale share price of North River Resources plc on the day before the date of this announcement, as publicly disclosed prior to the open of trade on the date of this announcement; and
-- the net cash of Kalahari, as disclosed by Kalahari as at the date of this announcement;
-- the total implied value of Extract (in UK pounds sterling ("GBP")) has then been derived from the implied value of Kalahari's 42.5 per cent. holding in Extract (in GBP);
-- the total implied value of Extract (in GBP) has been converted to Australian dollars ("AUD") at the AUD:GBP exchange rate of AUD1.00:GBP0.6535, being the spot rate set by the Reserve Bank of Australia as displayed on Reuters page "RBA26" as at 4.00pm (Sydney, Australia time) on the date of this announcement; and
-- from this value (in AUD), the Extract Offer Price per Extract Share (on a fully diluted basis) has been calculated.
Please refer to Appendix V for further details of this calculation.
Kalahari's shareholding in Extract
The Kalahari Directors have advised CGNPC-URC and Taurus that Kalahari will not accept the Extract Offer made in respect of its Extract Shares.
APPENDIX V
Extract Offer Price ("see-through") Calculation ----------------------------------------------------------- GENERAL ASSUMPTIONS ---------------------------------------------------------- FX Rates ----------------------------------------------------------- AUD-GBP 1.00 0.6535 ----------------------------------------------- --------- - KALAHARI ASSUMPTIONS ----------------------------------------------------------- Current Shares Outstanding m 250.77 ----------------------------------------------- --------- - Intrinsic Value of Options Outstanding GBPm 21.09 ----------------------------------------------- --------- - Kalahari Shareholding in Extract m shares 107.34 ----------------------------------------------- --------- - Kalahari Net Cash GBPm 20.12 ----------------------------------------------- --------- - North River Resources Investment ----------------------------------------------------------- Current Shares Outstanding m shares 701.20 ----------------------------------------------- --------- - Kalahari Interest in North River Resources m shares 266.67 ----------------------------------------------- --------- - North River Resources Share Price GBp 1.90 ----------------------------------------------- --------- - North River Resources Investment Value GBPm 5.07 ----------------------------------------------- --------- - EXTRACT ASSUMPTIONS ----------------------------------------------------------- Capital Structure ----------------------------------------------------------- Current Shares Outstanding m 251.16 ----------------------------------------------- --------- - Extract Performance Rights m 1.28 ----------------------------------------------- --------- - Total Shares Outstanding (Fully diluted) m 252.44 ----------------------------------------------- --------- - TAURUS OFFER ----------------------------------------------------------- Taurus Acquisition of Kalahari ----------------------------------------------------------- Taurus Offer Price GBp 243.55 ----------------------------------------------- --------- - Current Shares Outstanding m 250.77 ----------------------------------------------- --------- - Kalahari Equity Value under Offer GBPm 610.74 ----------------------------------------------- --------- - IMPLIED DOWNSTREAM VALUATION OF EXTRACT -----------------------------------------------------------Total Consideration GBPm 610.74 ----------------------------------------------- --------- - Plus cash payments for intrinsic value of Kalahari options GBPm 21.09 ----------------------------------------------- --------- - Less Kalahari net cash GBPm (20.12) ----------------------------------------------- --------- - Less North River Investment Value GBPm (5.07) ----------------------------------------------- --------- - Implied See-Through Value of Extract Interest GBPm 606.65 ----------------------------------------------- --------- - Implied See-Through Value of Extract Interest (AUD) AUDm 928.31 ----------------------------------------------- --------- - Extract Interest (Fully diluted) 42.52% ----------------------------------------------- --------- - Implied Total extract Equity Value AUDm 2,183.11 ----------------------------------------------- --------- - Implied Total Extract Equity value per share AUD 8.65 ----------------------------------------------- --------- -
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