Cardinal still backing Shandong

Cardinal still backing Shandong
Mining News Pro - Gold miner Nordgold has told the shareholders of takeover target Cardinal Resources that it wILL not be improving on its A$1 a share cash offer, unless a higher competing offer emerges.

Nordgold last week increased its offer price for Cardinal shares from 90c a share to A$1 a share, matching an offer from fellow suitor Shandong Gold Mining.

Nordgold turned to the Australian Takeovers Panel at the tail end of last week, after ASX-listed Cardinal suggested that Shandong could be in a position to increase its offer price for Cardinal, despite having issued a final offer notice.

Nordgold, which holds a 27.8% interest in Cardinal, argued that its increased offer was not a ‘higher competing offer’, and was seeking orders from the Takeovers Panel reaffirming that Shandong was unable to increase its offer price, unless an offer above A$1 a share was made to the market.

Nordgold’s insistence that its A$1 a share offer was final comes as Cardinal revealed that shareholders representing 22.81% of its shares intended to accept the Shandong offer, in the absence of an increased offer from Nordgold, or a superior proposal.

The Cardinal board has continued to unanimously recommend that shareholders accept the Shandong offer.

Shandong for its part has said that it would accelerate the payment under its own offer, to three business days, and has extended the offer period until October 30.

Nordgold’s offer for Cardinal will close on November 6.

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