July 11 (Bloomberg) -- Bannerman Resources Ltd., an Australian uranium developer, said it received an initial A$143 million ($153 million) cash takeover proposal from China’s Sichuan Hanlong Group.
Hanlong offered 61.2 cents a share through its Hanlong Mining Investment Pty unit, the Perth-based company said today in a statement. That’s 59 percent more than its closing price on July 8.
Buying Bannerman would give Hanlong stakes in two uranium properties in Namibia, including its 80 percent owned Etango project located south west of Rio Tinto Group’s Roessing uranium mine. Bannerman said the proposal appeared timed to take advantage of the drop in its share price following the nuclear disaster in Japan.
“Bannerman controls one of the largest undeveloped uranium resources in the world and, despite recent events, there is no doubt that nuclear power will continue to play a key role in meeting the world’s growing energy needs as well as alleviating greenhouse gas emissions,” Bannerman Chairman David Smith said in the statement.
Shares of Bannerman surged the most in more than two years when trading resumed this morning. The stock climbed 34 percent to 51.5 cents in Sydney at 11:04 a.m. local time, trimming losses this year to 31 percent.
The company has been in talks with a number of “large and well-funded parties” about financing, development and operation of the Etango project, according to the statement.
Bannerman is being advised by Macquarie Group Ltd. and Cutfield Freeman & Co.
To contact the reporter on this story: Elisabeth Behrmann in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Rebecca Keenan at email@example.com.