|CGNPC moves closer to Kalahari purchase|
Updated: 2012-02-02 07:49
By Liu Yiyu (
That's after Rio Tinto PLC - Kalahari's fourth-largest shareholder - agreed to sell its approximately 11.1 percent stake in the
CGNPC Uranium Resources Co, the resources arm of CGNPC, declined to comment.
"CGNPC has moved closer to its target," said Monica Sun, senior associate at the international energy group at Herbert Smith LLP, which advises on cross-border energy and resource deals. "This is a significant deal for CGNPC, as the seller controls abundant uranium resources," Sun said.
In January, CGNPC and its partner China-Africa Development Fund said they had secured a 30.8 percent stake in the London-listed Kalahari. Rio Tinto's shareholding would put the partnership's combined stakes at roughly 42 percent. However, the bid must gain the approval of more than 50 percent of Kalahari's shareholders.
Kalahari has a 42.74 percent interest in Extract Resources, the owner of the Husab uranium project in
The successful acquisition of 50 percent of Kalahari would trigger an offer of $8.90 for each share for Extract, valuing the company at around $2.2 billion.
Last year, CGNPC retreated from a bid to acquire Kalahari after the
However, buying opportunities continue to emerge, driven by perceptions of a floor to the uranium spot price holding at around $
The dynamics driving the near-term sector outlook continue to be dominated by the aftermath of the
CGNPC has the biggest number of nuclear projects currently under construction globally and is expected to become the world's largest nuclear developer over the next 10 to 15 years.