Chinese A$2.18bn takeover offer for Extract Resources
February, 2012 - Melbourne, Victoria
Taurus Mineral, owned by Chinese state-owned CGNPC Uranium Resources Company and PRC-based China Africa Development Fund, is to make a A$2.18bn downstream takeover offer for Extract Resources Limited. This offer follows on from Taurus Minerals' successful upstream £632m (approx A$967m) offer for Kalahari Minerals plc.
Minter Ellison is advising Taurus Mineral on the offer for Extract Resources and on the US$1.175bn financing facility from China Development Bank. The firm's advisory team is led by M&A/Energy & Resources partner Marcus Best and includes specialists partners Bart Oude-Vrielink (Equity Capital Markets), Andrew Thompson (Energy & Resources) and Theo Kindynis (Finance) and David Schiavello (Senior Associate, Melbourne), Carol Mao (Lawyer, Perth) and Steven Wang (Lawyer, Melbourne).
Extract Resources is a Western Australian-based company that is listed on the ASX, TSX and NSX. It owns a 100% interest in the Husab uranium project in Namibia, which is ranked as the 4th largest uranium deposit in the world.
According to Marcus Best, who also led the team that advised Taurus Mineral on the Australian aspects of its successful bid for Kalahari Resources, this is a complex cross-border transaction involving both upstream and downstream takeover aspects with ASX, UK AIM, NSX and TSX listing considerations. "As an international full service firm, we've been able to utilise our global network of legal experts on this deal," he said.
"The transaction highlights China's emphasis on diversifying energy resources and its intended very substantial increase in nuclear generating capacity. Our client Taurus Mineral is at the forefront of China's diversification to provide cleaner and lower carbon power to its growing population."
