Uranium miner faces Chinese power play

THE corporate watchdog says a Chinese state-owned power business has to launch a $2.2 billion takeover for Australian uranium company Extract Resources if the Chinese group is winning in its bid for Extract's 43 per cent shareholder.

China Guangdong Nuclear Power Group Uranium Resources Company launched a gracious invasion bid overnight on the London Stock Exchange offering £632 million ($A979 million) for Extract's main shareholder, Kalahari Minerals, which owns 43 per cent.

Under Australia's stock exchange rules CGNPC would then have to pursue the Kalahari offer with a bid for Extract because it would own additional than 20 per cent of its shares.Perth-based Extract said yesterday that CGNPC would be necessary to offer shareholders $8.65 a share, as it had established a ruling from the Australian Securities and Investments Commission that CGNPC had to make a bid under Australian regulations.