Ex­tract wants full bid from suitor

Townsville Bulletin - - Investor -

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.

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