Although China's largest uranium deal is at stake, but in Japan during the nuclear crisis, although other areas of uranium trading investors lose their senses, China has maintained a calm. But China may also have no choice.
China Guangdong Nuclear Power Group (China Guangdong Nuclear Power Holdings Co., Referred to as: China Guangdong Nuclear) was launched March 7 to 756 million pounds acquisition of Kalahari Minerals of the transaction, the company seems to have been a major success. The deal for China in a good position, available in Namibia, one of the world's largest uranium deposit. Kalahari Minerals's major asset is the exploration of uranium deposits in this company holds nearly 43% of Extract Resources shares.
However, the March 11 earthquake and tsunamis in Japan's nuclear crisis emerged after the uranium price slump triggered, making the trading price of China Guangdong Nuclear seems to be extremely overvalued. Kalahari's latest share price is 240 pence, while the China Guangdong Nuclear Power's offer is 290 pence per share. Prospects of global nuclear power a wide range of concerns.
Other transactions in this area are in favor of the buyer to renegotiate the direction of the occasion, the attitude of China Guangdong Nuclear looked surprise. Affected by the earthquake in Japan, Russia, JSC Atomredmetzoloto to 1.16 billion Australian dollars originally acquired business to focus on uranium exploration in Tanzania offer lower business Mantra Resources of 1.4 billion Australian dollars, after the offer is still lower target received the recommendation of the Board of Directors .
Leading China Guangdong Nuclear may be worried about thinking. China Guangdong Nuclear know the sudden offer to the market by surprise. Many investors had expected, Rio Tinto (Rio Tinto) will be the acquisition of Kalahari, has been held since Rio Tinto 11.5% of the shares of the company, and Rio Tinto Rossing uranium mine operated from Extract Resources Husab uranium mine in Namibia is only a few kilometers away. If the withdrawal of the acquisition at this time, the China Guangdong Nuclear may give the Board an opportunity to give Kalahari support their bid, instead negotiating with Rio Tinto.
China Guangdong Nuclear unwilling to renegotiate the company may also reflect concerns that the current nuclear power (especially in China) too far. 479 in the world plans to build reactors in China and India account for approximately half. The urgent need to sustain economic growth and electricity can not find cheap alternative energy-rich premise, China and India can not give up nuclear technology.
Strategic needs of Chinese companies and the valuation of balance, when demand usually is a strategic win. China Guangdong Nuclear Kalahari acquisition transactions may not look cheap, but this does not mean that it is a bad choice. Listen Read phonetically Dictionary - View detailed dictionaryabbreviation0.that's0.it's0.i.e.phrase0.it is0.that is
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