Kalahari and CGNPC talking again

10 October 2011

Kalahari Minerals has confirmed that it has resumed discussions with China Guangdong Nuclear Power Corporation's (CGNPC's) uranium subsidiary on a possible buyout. Earlier this year CGNPC Uranium Resources made an offer worth £756 million ($1.23 billion) for UK-based Kalahari, but the offer was later withdrawn after the UK's Takeover Panel ruled that CGNPC was not allowed to subsequently reduce its offer for the company. According to Kalahari, the parties are now in talks again, with the intention of reaching agreement on a recommended offer for its entire issued share capital, but warns that "there can be no certainty as to the terms of any offer should an offer be made." The deal would give CGNPC a significant stake in the Husab uranium project in Namibia: Kalahari owns some 43% of Husab developer Extract Resources.