Uranium miner Kalahari agrees takeover by Chinese

The board of Kalahari has recommended that China Guangdong Nuclear Power Corp (CGNPC-URC) take over the company in a deal valuing it at £632m.

The takeover is set to hand the Chinese Kalahari's 43pc stake in the Husab uranium project in Namibia, which could become the world's second biggest uranium mine. China is on the hunt for new sources of uranium as its demand for nuclear power grows.

Under the offer, Kalahari's shareholders will receive 243.55p a share. CGNPC-URC said its offer hinges on acceptance by Kalahari investors representing at least 50pc of shares.

"In the light of the unexpected circumstances in Japan and their impact on uranium equities, the Kalahari directors recognise the altered market dynamic and subsequently views the offer from CGNPC-URC as attractive," said Mark Hohnen, Kalahari's chairman.

The company revealed in March that a unit of the Chinese company had proposed a possible offer of 290p a share, but the plans were derailed as the Japanese earthquake and subsequent Fukushima nuclear disaster sent the price of uranium plunging.

The Takeover Panel rejected an agreement on a new price of 270p, which meant the two parties had to wait three months before they started talking again in October.

Under the deal, the shares would be bought by Taurus, a vehicle set up by the Chinese nuclear company with CADFund, an investment fund focused on Chinese expansion into Africa.

The acquisition is set to be the second biggest Chinese takeover of a foreign mining company, according to Bloomberg figures.

Kalahari shares closed up 7½ at 242p.