Reuters reported that Kalahari Minerals major shareholder in uranium developer Extract Resources expects its Chinese suitor would eventually make a takeover offer for Extract, USD 2 billion company if it goes ahead with a bid for Kalahari.

Mr Mark Hohnen chairman of Kalahari said that "I don't think there is any suggestion ever that they would not want to do that. It's a matter of timing I would have thought."

State owned China Guangdong Nuclear Power Corporation is in talks for a potential takeover of Kalahari with an announcement due by November 11th 2011 on whether a deal will go ahead.

Kalahari's main asset is its 43% stake in Extract coveted for its Husab uranium project in Namibia which could become the world's second largest uranium mine.

Under Australian rules, CNGPC would be required to make a full takeover offer once it owns more than 20% of Extract but the securities regulator can grant exceptions. Extract last traded at AUD 7.86 share and earlier this year hit a high of AUD 10.80 per share on speculation of a Chinese bid.

(Sourced from Reuters)