Energy

Guangdong Nuclear retracts Kalahari bid

By Simon Casey (China Daily)
Updated: 2011-05-12 11:16

London - China Guangdong Nuclear Power Group Co withdrew its 712 million-pound ($1.16 billion) takeover offer for uranium mining company Kalahari Minerals Plc after the UK Takeover Panel barred it from reducing the bid.

Guangdong Nuclear may make another offer if another company makes a bid for London-based Kalahari, or if Kalahari reduces its stake in Australia's Extract Resources Ltd, the Shenzhen, Guangdong province-based company said in a statement on Tuesday.

Related readings:  China's nuclear development might be slowed  New nuclear power plants 'set to be approved'  Guangdong Nuclear may cut bid for Kalahari  Guangdong Nuclear may have to bid for Extract

Kalahari agreed to Guangdong Nuclear's bid in March. Both companies approached the panel with a proposed cut in the offer price to 270 pence a share from 290 pence after the value of Kalahari's 43 percent stake in Extract dropped following the nuclear crisis in Japan.

Shares of uranium explorers and producers tumbled after the March 11 earthquake and tsunami in Japan, amid concerns that the crisis at the Fukushima Daiichi nuclear power plant would prompt countries to delay plans to build more nuclear reactors.

Mantra Resources Ltd, an Australian uranium explorer with projects in Africa, agreed in March to a reduced takeover offer from Rosatom Corp, Russia's State-owned nuclear company.

Bloomberg News