Kalahari Minerals Share Discussion Threads

[zangdook] 11/5/2011 11:54

In this vein, while Kalahari considers its position in regard to
building a commercial relationship, Kalahari has decided that it will not
demand payment of the GBP7.5 million Break Fee at this time, although it has
reserved its rights in relation to this.

Who do the board work for?

[kimball808] 11/5/2011 11:53

'We may, going forwards, review alternatives for co-operation in the absence of an offer by CGNPC-URC for Kalahari.'

In the managements pursuit for increasing shareholder value, I hope they don't consider just giving it away...

[strollingmolby] 11/5/2011 11:50

AGM statement out - KAH not demanding the £7.5m break fee from CGNPC!

I'd suggest chasing the £7.5m is the least the directors could do on behalf of the owners of the company for their wasted management time.

The Board is citing ongoing commercial relationships with CGNPC though, and also mention their displeasure at Rio Tinto voting for the third time against the resolution to increase the Company's headroom to allot additional shares.

Market seems to like the statement though...

:o)

[beefeater25] 11/5/2011 11:19

How soon could they table a bid for Extract?

Any thoughts on whether it would be the equivalent value as a 270p bid for KAH would have been?

Also why would they not just have bid for EXT in the first place?

Thoughts?

[troc1958] 11/5/2011 11:07

CGNPC must have had indirect "word" that the Aussie takeover panel would not let them buy Kalahari without also bidding for Extract. Thus a bid for KAH would not have been accepted anyway - thus their withdrawal. Yes, its possible that CGNPC will now bid for Extract directly.

All this does not detract from the fact that the Husab resource is extremely valuable and given a rise in the price of uranium, will underpin and push up the share price of both Extract and KAH in the medium term.

[nielsc] 11/5/2011 09:31

BeefEater,

I really hope that CGNPC have to pay more than 290p if they come back in the future. Very opportunistic trying to lower an already low bid of 290p to 270p.

Cheers,
Niels

[beefeater25] 11/5/2011 09:29

Good post Graham. 2-3 possible outcomes to look forward to - all positive!

My preference would be the merger then a list on the main Londong exchange.
Interesting few weeks ahead! Looking forward to the next statement regarding the MORE programme then the issuing of the mining licence.

Still cant get my head around why CGNPC wouldnt go to 290p though!?

[nielsc] 11/5/2011 09:28

zangdook,

This is true, but the board will hold some clout. The 270p figure is not one that I particularly like. I feel that KAH has managed to get off the hook. Hope to see the KAH price rise naturally as the Uranium market heats up.

Cheers,
Niels

[zangdook] 11/5/2011 09:21

Rio now know that KAH board will accept 270p. An easy move to swoop in and take KAH out at 270p now perhaps.

It's not up to the board alone, fortunately.

[nielsc] 11/5/2011 09:00

RBF,

I have read it and to the best of my understanding a £7.5m payment is due. I like you would like to see it stated so we all know for sure.

Cheers,
Niels

[rbf] 11/5/2011 08:56

Thanks Nielsc...i am aware of what the agreement says, but await confirmation of payment....It seems strange (& therefore of some concern) that no mention of this break fee was made by either party (particularly KAH).......

Perhaps the matter will be clarified soon...I believe there is a meeting (AGM?) today / tomorrow....

[nielsc] 11/5/2011 08:47

RBF/Kimball808,

From the initial agreement
Obviously they extended the offer period.


"
12. Implementation Agreement

Kalahari has entered into the Implementation Agreement with CGNPC-URC, which sets out certain steps to be taken by both Kalahari and CGNPC-URC to effect the transaction. The Implementation Agreement contains obligations for each of Kalahari and CGNPC-URC to pay the other a break fee of £7.5 million (the "Break Fee") in the following circumstances.
....
Save as set out below, CGNPC-URC shall pay the Break Fee to Kalahari if, by 5.00 p.m. on 3 May 2011 (or such other date as may be agreed between CGNPC-URC and Kalahari), CGNPC-URC has (i) not satisfied or, if applicable, waived each of the Pre-Conditions set out in paragraph 9 above (other than Pre-Condition 5 and Pre-Conditions 2 and 3 in the circumstances described below); (ii) not released the Rule 2.5 Announcement; or (iii) inserted an offer price in the Rule 2.5 Announcement of less than 290 pence per Kalahari Share. In addition CGNPC-URC shall pay a Break Fee to Kalahari if the Offer Document is not sent to Kalahari Shareholders within 14 days of the Rule 2.5 Announcement or CGNPC-URC is in material breach of (i) certain of its obligations under the Implementation Agreement; or (ii) its obligations under Rule 31.8 of the Code to pay the consideration monies to the Kalahari Shareholders.

"



Hopefully the demand for Uranium will grow in the next 3 months so that when CGNPC returns KAH is at a higher price than the last time they approached. Also Rio now know that KAH board will accept 270p. An easy move to swoop in and take KAH out at 270p now perhaps.


Cheers,
Niels

[zangdook] 11/5/2011 08:12

It won't do China's acquisitiveness any favours to welch.

[kimball808] 11/5/2011 08:08

Yes, I wonder that RBF....

[rbf] 11/5/2011 07:59

Can't see any mention of the £7.5m in the announcement this morning...are we sure it will be paid?

[zangdook] 11/5/2011 07:01

...or will the EXT/KAH merger talks restart? That would be the most sensible thing to do IMV - they should never have stopped those talks as there was never a firm offer, and if they hadn't stopped talking they might have an agreement ready.

[zangdook] 11/5/2011 06:58

I wonder what they'll do with the £7.5m. It's more than they need for working capital as KAH is really just an investment company now. Will EXT do another placing?

[kimball808] 11/5/2011 06:51

Looks like Extract took a drop but recovered half now down 3.5%. Government MP on BBC yesterday saying that the UK can not rely on wind power alone, and must embrace nuclear power. Sounds like most countries and starting to sound bullish again on nuclear power, just need the old yellow cake to start reflecting this...at least a small rise on the week...


Is there a period of time that has to elapse before CGNPC can make another revised offer free of regulatory interference?

[simon gordon] 10/5/2011 21:32

Just spotted the RNS from this evening...

[simon gordon] 10/5/2011 21:22

FT - 10/5/11 @ 20.48;




Kalahari Minerals eased 1 per cent to 226p after the Hearings Committee of the Takeover Panel said China Guangdong Nuclear Power Corp could not lower its 290p offer for the company.

CGNPC now has two options: either proceed with its original offer, or walk away and return with a revised bid in three months time. By which time Kalahari, whose sole asset is a stake in a Namibian uranium project, might have been acquired by another another mining company such as Rio Tinto.

"We believe Rio Tinto could make a bolt-on acquisition in uranium to secure its position as one of the world's largest uranium producers. Its most likely option, in our view, could be to acquire the Husab mine by buying out Extract Resources and/or Kalahari Minerals. Rio Tinto currently owns 14.2 per cent of Extract and 11.5 per cent of Kalahari, which in turn owns 42.8 per cent of Extract," said RBS.