Trading in Australia's Extract Resources Ltd. (EXT.AU) was halted Friday while the company, which owns one of the world's biggest deposits of uranium, awaits an expected bid from China Guangdong Nuclear Power Corp. and its partner that would value it at almost A$2.2 billion (US$2.4 billion).

The Australian bourse said trading will be suspended until either Tuesday or an announcement is released to the market.

The halt was requested by Extract "in anticipation of an announcement from Taurus," the bidding vehicle of China Guangdong and China-Africa Development Fund, the mining company said.

The Chinese nuclear fuels supplier and its partner have bid GBP632 million (US$999 million) for London-listed Kalahari Minerals PLC (KAH.LN), whose main asset is a nearly 43% interest in Extract. The Chinese companies have said they would abide by Australian takeover rules, which require the bid to be extended to Extract's shareholders within four weeks of them securing more than 50% of parent Kalahari.

The bid for Kalahari was declared unconditional Friday and the Chinese companies said they had received acceptances for their offer from shareholders representing almost 90% of Kalahari's shares.

At stake is Extract's Husab uranium project in Namibia, which promises to become one of the world's largest uranium mines and neighbors Rio Tinto PLC's (RIO) operating Rossing uranium mine. Mining and power companies are seeking uranium supplies to meet an expected rise in demand from China, India and other countries with plans to build fleets of nuclear power stations.

China Guangdong's and CAD Fund's offer for Kalahari of 243.55 pence in cash was due to close Thursday. Rio earlier this week said it would sell its roughly 11.1% stake in Kalahari to the Chinese companies, and would in time consider what to do with an about 14.2% stake in Extract.

Rio and Extract said a year ago they had discussed a possible combination of Rossing mine and Husab project. Extract more recently said its board would only give its recommendation on the pending takeover offer after the bid is made, and in the meantime was continuing to look for alternatives and was negotiating with potential investors in Husab.

China Guangdong and CAD Fund have said they plan to offer A$8.65 a share for Extract, dependent on their acquiring a more than 50% stake in Kalahari.

Namibia's competition authorities approved the possible takeover of Extract without conditions in mid-January.

Extract's shares last traded at A$8.57, giving it a market capitalization of A$2.15 billion.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com

Excite Technology Services (ASX:EXT)
Historical Stock Chart
From Dec 2024 to Jan 2025 Click Here for more Excite Technology Services Charts.
Excite Technology Services (ASX:EXT)
Historical Stock Chart
From Jan 2024 to Jan 2025 Click Here for more Excite Technology Services Charts.