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- Cardinal Resources’ (CDV) proposed takeover bid from Shandong Mining has received the tick of approval from the Foreign Investment Review Board
- Shandong’s proposed bid to acquire a controlling stake of no less than 50.1 per cent of Cardinal Resources was contingent on the government’s approval
- Following the approval, Cardinal’s board have reiterated their position that shareholders accept the Shandong bid, which proposes a buy-out price of 70 cents per share
- Meanwhile, competing bidder Nordgold is maintaining its offer, which is valued at four cents fewer than the Shandong bid
- Cardinal Resources (CDV) closed steady at $0.72 per share
Cardinal Resources’ (CDV) proposed takeover bid from Shandong Mining has received the tick of approval from the Foreign Investment Review Board.
Shandong’s proposed bid to acquire a controlling stake of no less than 50.1 per cent of Cardinal Resources was contingent on the government’s approval.
The deal was also contingent on a number of factors, including approval from Cardinal’s shareholders and the assurance that there would be no adverse change if the deal was accepted.
There were fears within the market that increased tension between China and Australia in recent months could impact China-based Shandong receiving the much-needed approval.
However, it does not appear these concerns have been realised, despite new legislation proposing major overhauls to the Foreign Investment Review Board’s process. It would appear Shandong received the approval before those changes were introduced.
Following the approval, Cardinal’s board have reiterated their position that shareholders accept the Shandong bid, which proposes a buy-out price of 70 cents per share.
Alongside the Shandong offer is a second offer by rival bidder Nordgold. There has been a lengthy back-and-to between the bidders but ultimately Nordgold’s offer was not endorsed by Cardinal’s board and is currently valued at four cents less per share than Shandong’s competing bid.
Both Shandong and Nordgold are bidding for control of Cardinal’s Ghana-based gold projects, including the Namdini gold project, which lies within the region’s prospective Nangodi Greenstone Belt.
In related news, the Namdini project received its own approval earlier this year from the Ghana Government to proceed with the site’s development.
Cardinal Resources (CDV) closed steady at $0.72 per share.
