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- The bidding war for the takeover of Cardinal Resources (CDV) has taken another turn, with NordGold again extending the offer period for its bid
- The takeover saga dates back to March when NordGold first proposed an on-market takeover of Cardinal
- Since then, a bidding war has ensued between Nordgold and Shandong Gold
- Shandong seems to be in the box seat with the highest bid, the endorsement of Cardinal’s directors and Foreign Investment Review Board approval
- NordGold’s only trump card is its current Cardinal shareholding, which equates to a voting power of around 28.5 per cent
- Shareholders have until October 13 to accept the Shandong offer
- Cardinal Resources is trading 0.47 per cent lower at $1.05
The bidding war for the takeover of Cardinal Resources (CDV) has taken another turn, with NordGold again extending the offer period for its bid.
Bidding war
The takeover saga dates back to March when NordGold first proposed an on-market takeover of Cardinal.
Since then, a bidding war has ensued between Nordgold and Shandong Gold, with NordGold’s original offer price of 45.775 cents per share more than doubling to Shandong’s last offer of $1.00.
Shandong seems to be in the box seat with the highest bid, the endorsement of Cardinal’s directors and Foreign Investment Review Board approval.
The only remaining hurdle is gaining over 50 per cent approval from Cardinal’s investors.
What’s next?
NordGold has continued to raise the stakes in the bidding war, but Shandong has always been quick to respond with a higher bid.
Cardinal’s directors also seem more keen on the Shandong offer, having recommended shareholders take up the proposal when Shandong’s bid stood at just 60 cents.
At this point, without a further bid increase it seems unlikely NordGold’s offer extension will bear fruit. The last bid of 90 cents is well below Shandong’s $1.00 offer.
NordGold’s only trump card is its current Cardinal shareholding, which equates to a voting power of around 28.5 per cent. Only 21.5 per cent of Cardinal shareholders need to turn down Shandong’s offer to sink the proposal.
NordGold’s offer has been extended to October 8.
Shareholders have until October 13 to accept the Shandong offer.
Cardinal Resources is trading 0.47 per cent lower at $1.05 at 3:18 pm AEST.
