Guangdong’s Offer for Extract Resources Accepted

Bloomberg reported Extract Resources Ltd. (TSX:EXT,ASX:EXT) is planning to accept China Guangdong Nuclear Power Group Co.’s A$2.2 billion ($2.4 billion) offer.

As quoted in the market news:

The directors recommended that shareholders accept the A$8.65-a-share cash offer from Taurus Mineral Ltd., a venture of the state-owned Chinese company and the China-Africa Development Fund, Extract said today in a statement.

The approach was triggered by Guangdong Nuclear’s bid for Kalahari Minerals Plc (KAH), which owns 43 percent of Extract. China’s second-largest reactor builder, seeking new supplies of uranium to feed demand for nuclear power, offered 632 million pounds ($1 billion) for the London-based company in December.

Click here to read the full Bloomberg report.