Join our daily newsletter At The Bell to receive exclusive market insights
- Cardinal Resources (CDV) has received a revised off-market takeover offer from Hong Kong-based Shandong Gold Mining
- Pursuant to the new proposal, Shandong has offered to acquire all of the issued and outstanding shares in Cardinal Resources for $0.70 per share
- While the proposal is currently under review by the company’s board of directors, Cardinal has advised that its existing shareholders take no action
- The revised proposal is the latest in a string of competing offers between Shandong and Moscow-based Nord Gold SE
- Cardinal Resources is steady on the market in early trade, with shares priced at 72.5 cents each
Cardinal Resources (CDV) has received a revised off-market takeover offer from Hong Kong-based Shandong Gold Mining.
Pursuant to the new proposal, Shandong has offered to acquire all of Cardinal’s shares which it doesn’t already own for $0.70 each.
Shandong’s revised offer is the latest in a number of competing bids between the state-owned gold miner and Moscow-based Nord Gold SE.
The battle began on March 16, 2020, when Nord Gold submitted a non-binding indicative and conditional proposal to acquire all the issued share capital of Cardinal at a price of $0.45 per share.
Nikolai Zelenski, CEO of Nord Gold, said at the time that the preliminary proposal would represent a substantial cash premium for Cardinal’s shareholders, and that it would provide “an immediate opportunity to realise value without the associated risks of project development.”
The offer was then superseded on June 18 by Shandong, which proposed an off-market takeover at a price of $0.60 per share, representing a 31.1 per cent premium over Nord Gold’s proposal.
Nord Gold then bounced back, with an offer on July 15 to acquire Cardinal’s shares at a price of $0.66 per share. This represents a 10 per cent increase over Shandong’s earlier counter-offer.
Today, Shandong has responded with a further increase to $0.70 per share, bumping the previous price by a further 6.1 per cent.
The latest offer is currently under review by Cardinal’s board of directors, in conjunction with the special committee and a number of financial and legal advisors.
While the proposal remains subject to a number of conditions, including approval from regulatory authorities in both Australia and China, Cardinal has requested that its shareholders take no action for the time being.
Cardinal Resources is steady on the market in early trade, with shares priced at 72.5 cents each at 10:29 am AEST.
-1200x645-380x200.jpg)