Mantra Resources takes up revised Rosatom offer
22 Mar, 2011 19:28
The Japanese nuclear reactor disaster, which has seen uranium prices hammered worldwide, has lead to Australia based Mantra Resources accepting a 12% reduction in the cash offer from Russia’s Rosatom.
The revised deal brings the takeover offer agreed in December to just over $1.03 billion. Shares in Mantra Resources had slumped 28% last Thursday after ARMZ, the subsidiary of Rosatom managing the takeover, and a major global uranium producer, withdrew from its previously agreed offer price.ARMZ invoked a material adverse change clause in the original takeover agreement in its decision to walk away from the existing Mantra Resources offer, claiming that events in Japan had undermined its financial position and outlook.Meetings between the takeover target, which has the Mkuju River project in Tanzania as its major asset, took place in Barbados where the cash price was reduced from AU$8 to AU$7.02. The announcement of a revised deal saw Mantra Resources shares climb 26%.The revision to the takeover offer came as Nations, including China and Germany, suspensions or deferrals of plans to expand nuclear energy production in the wake of the disaster at Japan’s Fukushima power plant.