- Cardinal Resources (CDV) has received a new on-market takeover bid from NordGold, upping the ante in the bidding war with Shandong Gold
- NordGold’s offer of 90 cents per share — a 28.6 per cent premium to Shandong’s last offer — expires on September 10
- Cardinal has been quick to advise shareholders to take no action as the company has obligations under a previous agreement with Shandong
- Under the terms of that agreement, Shandong has the option to match any subsequent offers
- Shandong’s current bid stands at 70 cents per share and would require more than 50 per cent of shareholders to get onboard for the takeover to go-ahead
- Cardinal Resources is trading 26.21 per cent higher at 91.5 cents
Cardinal Resources (CDV) has received a new on-market takeover bid from NordGold, upping the ante in the bidding war with Shandong Gold.
Take no action
Cardinal has been quick to advise shareholders to take no action as the company has obligations under the previous bid implementation agreement with Shandong.
Under the terms of that agreement, Shandong has the option to match any subsequent offers.
The back-and-forth between NordGold and Shandong has gone on for months, with NordGold’s latest offer of 90 cents per share far eclipsing either company’s previous offers.
Shandong’s current bid stands at 70 cents per share and would require more than 50 per cent of shareholders to get onboard for the takeover to go ahead.
NordGold’s new offer is a 28.6 per cent premium to the outstanding offer from Shandong, and the U.K.-based gold producer has named September 10 as the closing date for its revised offer.
Next steps
The ball is now in Shandong’s court to either match the NordGold offer or bow out.
Previously, Shandong Gold secured a bid implementation agreement with Cardinal and the company had already received Foreign Investment Review Board approval.
However, the original takeover bid from NordGold, received back in mid-March, valued Cardinal at 45.775 cents per share — when CDV was trading at 35 cents — meaning the latest offer is substantially higher than where it stood six months ago.
Cardinal Resources is trading 26.21 per cent higher at 91.5 cents at 11:34 am AEST.