Shandong ups Cardinal offer to A$1 a share
PERTH (miningweekly.com) – Suitor Shandong Gold Mining has increased its takeover offer for ASX- and TSX-listed Cardinal Resources from 70c a share to A$1 a share.
Shandong increased its offer after Cardinal shareholder Nordgold last week increased its own all-cash offer for Cardinal from 60c a share to 90c a share.
In addition to an increased offer price, the Shandong offer was also no longer subject to Chinese regulatory or Foreign Investment Review Board approval, but remains subject to a number of other conditions, including a minimum 50.1% acceptance condition.
Cardinal told shareholders on Monday that the improved offer from Shandong is being carefully considered in detail by the board and the special committee, as well as the company’s financial and legal advisers.
In the meantime, the company has urged its shareholders not to take any action with regards to either the Shandong or Nordgold bids.
Cardinal’s share price on the ASX increased by more than 10% on Monday, with the company trading at a high of A$1.03 a share.
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