Extract wants full bid from suitor
EXTRACT Resources Ltd is to oppose a takeover attempt of its largest shareholder by a Chinese state-owned uranium firm unless it makes a full bid for the parent.
The move by the Chinese group, if successful, would give the suitor almost 43 per cent of Extract’s share register, without triggering the 20 per cent takeover threshold under Australian law.
Chinese state-owned CGNPC Uranium Resources Co Ltd wants to bid for Kalahari Minerals plc, Extract’s second biggest shareholder, and has sought approval from the Australian Securities and Investments Commission for the deal.
Kalahari owns 42.79 per cent of Extract and is listed on the Namibian Stock Exchange in southern Africa, where Extract holds the Husab project, which it says is the world’s fifthlargest known uranium deposit.