(under-valued)Extract backs bid Kristie BattenFriday, 2 March...

(under-valued)

Extract backs bid
Kristie Batten
Friday, 2 March 2012

THE independent directors of Extract Resources have formally recommended an $A8.65 per share takeover bid from China’s Taurus Mineral.

The recommendation comes after a long process to attract superior proposals.

“Extract’s independent directors have undertaken a thorough review of all available options, including various scenarios for development of the project, and have actively sought alternative proposals from third parties,” Extract managing director and chief executive officer Jonathan Leslie said.

“In the absence of a superior proposal, Extract’s independent directors believe that the offer from Taurus represents the most attractive outcome for shareholders.

“The cash offer delivers value and certainty for Extract shareholders and the Extract board believes that Taurus is well placed to finance and develop Husab into one of the world’s largest uranium mines for the benefit of all stakeholders, including the Namibian people.”

Taurus already holds 42.7% of Extract through its takeover of its largest shareholder Kalahari Minerals.

Extract’s other major shareholders, Rio Tinto and ITOCHU Corporation, are yet to indicate their intentions, but both accepted the Taurus offer for Kalahari.

The independent directors of Extract, as well as other board members Neil MacLachlan and Alastair Clayton, have agreed to accept the offer for shares they own.

The offer will close on April 2.

Extract shares remain at $8.60.