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Monday, January 4, 2021 - 1:28:27 PM
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Mining News Pro - China’s Shandong Gold Mining has increased its shareholding in takeover target Cardinal Resources to 65.55%, after gaining control of the company just before Christmas, and increasing its offer price to A$1.075 a share.
Shandong in December announced its intention to increase its offer price from A$1.05 a share to A$1.075 a share, subject to the company acquiring an interest of more than 30% in Cardinal, and competitor Nordgold not extending its on-market takeover offer beyond December 23.
Russian suitor Nordgold took the decision to close its offer for Cardinal, without increasing its bid, stating that while the company held the Namdini project in the highest regard, the A$1.075 offer price from Shandong was “beyond that at which Nordgold feels able to justify”, taking into account the risk of mine development, entry into a new jurisdiction, and Nordgold’s required rate of return on new projects.
“The takeover offers for Cardinal have played out over an extended period, but ultimately resulted in a strong outcome for all shareholders, of which Nordgold has been the largest,” said Nordgold CEO Nikolai Zelenski.
“Nordgold has a strong record of capital discipline and cash flow generation, having built three mines, each on time and on budget. In the case of Cardinal, the competitive bidding and strong Australian dollar, have taken Nordgold to a very substantial profit on its investment, while allowing us to continue always to prioritise capital discipline and maximise value for our shareholders.”
Nordgold has accepted Shandong Gold’s offer for its own 27.8% interest in Cardinal.
Meanwhile, Ghanaian firm Engineers & Planners Company has also abandoned its A$1.05 a share offer for Cardinal, noting that a key condition of a 50.1% acceptance could not be satisfied with Shandong’s current shareholding.
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https://www.miningnews.ir/En/News/609913
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