International business law firm Lawrence Graham LLP (LG) has advised Kalahari Minerals Plc in its sale to Taurus Mineral, a newly incorporated company formed at the direction of CGNPC-Uranium Resources Co. Ltd and the China-Africa Development Fund, for £650 million. This is only the second acquisition of a UK-listed company by a Chinese state-owned enterprise.
The deal was declared unconditional as to acceptances today following the prior receipt of regulatory approvals from the relevant authorities in the UK and China, and also in Australia, as it involves a mandatory offer for Extract Resources Limited, an ASX listed, uranium exploration company in which Kalahari Minerals holds a significant stake.
Kalahari Minerals is a mining company with interests in uranium, gold, copper and other metals in Namibia. It is dual-listed on the Alternative Investment Market (AIM) in London and NSX in Namibia.
LG’s head of Middle East corporate, partner Tim Casben, led on the deal assisted by corporate associates Neil Calder and Gemma Neilson along with corporate tax partner Michael Murphy.
Tim Casben said: “I am delighted that this transaction has finally completed following the tough market conditions which followed the nuclear tragedy at Fukushima. The directors of Kalahari have worked tirelessly to maximise shareholder value in a very difficult market.
“Having acted for Kalahari Minerals since before its £14 million IPO on AIM, we are very pleased to have assisted in its successful sale for such a significant transaction value. This deal represents further evidence of consolidation in the natural resources sector and we expect to see China, in particular, making further acquisitions in Africa and elsewhere.”
Kalahari Minerals’ principal asset is its 42.5 per cent stake in Extract Resources Limited, which owns the fifth largest uranium deposit in the world.
LG is acting as UK legal counsel to Kalahari. Guantao Law Firm is acting as PRC legal adviser to Taurus Mineral. Ashurst is acting as the Taurus’s US and UK legal counsel, and Minter Ellison as its Australian counsel.
