The West Australian April 16-17, 2011 West Business P72 Herad on the Terrace Edited by Sean Smith
Mother Russia's government controlled uranium miner Atomredmetzoloto (ARMZ) is the latest player linked to the corporate shenanigans surrounding Extract Resources and its 43 per cent London-listed shareholder, Kalahari Minerals.
Kalahari is already in the crosshairs of China Guangdong Nuclear Power Holding Corporation (CGNPC), which has proposed a GBP756 million cash deal and has until May 3 to come up with a formal offer. Where the Kalahari offer gets interesting is that the Chinese may have to extend their bid to include Extract as well to comply with Australian corporate laws.
CGNPC's proposed GBP2.90-a-share offer is friendly but Kalahari's full-year results, out this week, revealed the London group had also held "discussions" with others, among them ARMZ and two of Kalahari's big shareholders, Rio Tinto and Itochu Corp.
Assuming CGNPC's offer eventuates, Kalahari shareholders will likely be leaning on ARMZ to create a bidding war, although whether the Russian's $1 billion tilt at Ian Middlemas' Mantra Resources has left it with any appetite remains to be seen.
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