PERTH (miningweekly.com) - Uranium developer Extract Resources went into a trading halt on Thursday, as its shareholder Kalahari Minerals and its Chinese suitor CGNPC Uranium Resources conclude discussions.
Extract told the ASX that it would remain in a trading halt until Kalahari made an announcement on the London Stock Exchange, or until November 14.
In October, Kalahari Minerals, which holds a 42.74% shareholding in Extract, said that CGNPC would eventually make a takeover offer for the ASX-listed uranium developer if it went ahead with its bid for Kalahari.
Under Australian rules, CGNPC would be required to make a full takeover offer for Extract once it owned more than 20% of the company, unless the securities regulator granted an exception.
CGNPC resumed takeover talks with Kalahari in October, after its informal bid was withdrawn earlier this year. CGNPC initially launched a £2.90-a-share takeover offer for Kalahari, but dropped the price to £2.70 a share following the natural disaster in Japan.
However, the UK Takeovers Panel told CGNPC that it could not make a bid lower than the £2.90 intention that it announced, and the Chinese firm subsequently withdrew its offer for Kalahari.