Kalahari Minerals' Extract Resources investment

[Retiringsoon]

Kalahari Minerals in possible take-over
7 March 2011

Kalahari Minerals plc (`Kalahari' or `the Company')

Statement Re Possible Offer

The Board of the Company notes the recent rise in the Company's share price.

On 21 February 2011 the Company announced it was holding discussions with Extract Resources Ltd (`Extract'), in which Kalahari holds an approximate 43% interest, to explore various different options that might simplify the Extract/ Kalahari shareholding structure to facilitate a combination of Extract's Husab Uranium Project with the neighbouring Rössing Uranium Mine owned by Rio Tinto plc. These discussions remain ongoing and there is no certainty that the parties will reach any agreement.

The Company further confirms that it is in talks with a third party, which may or may not lead to an offer being made for the entire issued share capital of the Company. Discussions are continuing and a further announcement will be made when appropriate.

Consequently the Company is considered to be in an "Offer Period" as defined in the City Code on Takeovers and Mergers (the "Code"), and the dealing disclosure requirements listed below will apply.

In accordance with Rule 2.10 of the Code, the Company confirms that it has 245,424,578 ordinary shares of 1 pence each in issue. The ISIN reference for these securities is GB00B117S132.

 

[pboyles]

So is this the start of the dump phase?

 

[Retiringsoon]

Bloomberg discloses that China Guangdong Nuclear Power Group Co., the nation’s second-largest reactor builded has made a "possible offer" of 756 million-pound ($1.2 billion) for Kalahari Minerals, at http://www.bloomberg.com/news/2011-...n-for-uranium-producer-kalahari-minerals.html

Am opening shot, I would think, with the ball now firmly in Rio's court . . .

 

[Retiringsoon]

The Possible Offer will comprise 290 pence in cash for each Kalahari Share (the "Offer Price"), valuing Kalahari's fully diluted share capital, including shares attributable to the Options and Convertible Loan Notes, at approximately £756 million.

According to Mineweb.com the Possible Offer is at an "attractive price" and represents a premium of approximately:

· 11 per cent to the Closing Price of 260.25 pence per Kalahari Share on 4 March 2011, being the latest practicable Business Day prior to the commencement of the Offer Period;

· 21 per cent to the Closing Price of 239.75 pence per Kalahari Share on 18 February 2011, being the latest practicable Business Day prior to the announcement by Extract Resources Ltd ("Extract") (in which Kalahari has a 42.79 per cent shareholding) that it was in discussions regarding a potential combination of Extract's Husab Uranium Project and Rio Tinto's Rössing Uranium Mine;

. and 38 per cent to the average Closing Price of 209.7 pence per Kalahari Share for the six months prior to and including 4 March 2011, being the latest practicable Business Day prior to the commencement of the Offer Period.

I would say before this deal is completed we may well see £3. 50 or even £4 per share, the latter would be a nice round figure of £1bn.

Sorry to have missed out pboyles?

 

[Retiringsoon]

Mineweb's link at: http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=122281&sn=Detail&pid=102055

 

[pboyles]

retiringsoon

I have looked at your site and agree that it does not have the characteristics of a pump and dump site. I also note the disclaimer:

1.√the above mentioned companies, Kalahari Minerals Plc, Extract Resources Ltd and North River Resources Plc (hereinafter "the Companies") are solely examples of listed companies involved in (future) resources mining operations and is not to be construed as a share recommendation. Neither Early Retirement Investor nor EMAR Publishing are registered as an investment advisor or as an independent financial advisor and do not provide individualised advice

That said, pb is right that you are advertising your site via the links in your posts - which is not allowed - and that you should have declared yourself a vendor.

jon

I'm not so sure Jon, have a look at the charts, big push up in the past year and then a massive drop, both around the same time.

 

[Retiringsoon]

Following the lifting of a temporary ban imposed by UK regulators, Kalahari confirmed on October 10, 2011 that offer talks had resumed with state-owned China Guangdong Nuclear Power Corp (CGNPC).

On 10th November 2011, the company announced that CGNPC has tabled a possible offer at 243.55 pence a share, valuing Kalahari at around £615 million, while negotiations continue. The company cautioned that "there can be no certainty that an offer will be made for the company."

CGNPC now has until 17.00 GMT on 8 December to either announce a firm intention to make an offer or state that it does not intend to make an offer.