September 8, 2009 / 12:45 AM / 8 years ago

China nuclear firm swoops on Australia uranium firm

SYDNEY, Sept 8 (Reuters) - Chinese state-owned power producer China Guangdong Nuclear Power Holding Co. Ltd has agreed a takeover bid for Australian uranium explorer Energy Metals (EME.AX), the Australian company said on Tuesday.

Under the deal, the Chinese firm will buy up to 70 percent of Energy Metals for A$1.02 per share and underwrite a 1-for-9 rights issue by the Australian firm at 90 cents a share.

Energy Metals’s 40 percent shareholder, Jindalee Resources (JRL.AX) Ltd, intends to accept the Chinese bid, in the absence of a superior offer, Energy Metals said. Energy Metals shares last traded at 86 cents a share, giving it market value of about A$100 million ($86 million). ($1=1.169 Australian Dollar) (Reporting by Mark Bendeich; Editing by Jonathan Standing)

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