PERTH (miningweekly.com) – The directors of ASX- and TSX-listed Cardinal Resources have accepted the takeover offer from suitor Shandong Gold Mining for their interest in the company.
The Cardinal directors collectively hold some 60.7% in the company.
Shandong last week increased its offer price for Cardinal from A$0.70 a share to A$1 a share, outbidding shareholder Nordgold, which had previously increased its own offer for Cardinal from A$0.60 a share to A$0.90 a share.
The improved Shandong offer valued Cardinal at approximately A$565.6-million on a fully diluted basis, representing a premium of 11.1% to Nordgold’s revised bid.
The board of Cardinal had previously urged shareholders to accept the improved offer from Shandong.
Cardinal on Tuesday pointed out that the Shandong offer remained subject to a number of conditions, including a minimum 50.1% acceptance condition.