- In a letter released today, Cardinal Resources (CDV) Chairman, Kevin Tomlinson, urged the company’s shareholders to accept a takeover bid from Shandong Gold
- The company received a revised offer from Shandong on July 23, in which it proposed to acquire all of Cardinal’s issued and outstanding shares at a price of C$0.50 each
- Shandong’s latest proposal came after a lengthy back-and-forth battle between the Hong Kong-based gold miner and Moscow-based Nord Gold SE
- Shandong’s offer is expected to remain open until October 13, 2020
- Cardinal Resources (CDV) is currently down 1.43 per cent and is trading at 69 cents per share
Cardinal Resources (CDV) Chairman, Kevin Tomlinson, is urging the company’s shareholders to accept the latest takeover bid from Shandong Gold.
Under the terms of the proposal, Shandong has offered to acquire all of Cardinal’s issued and outstanding shares at a price of C$0.50 each.
The revised proposal was received by Cardinal on July 23, and is the latest in number of competing bids between the state-owned gold miner and Moscow-based Nord Gold SE.
Negotiations began on March 16, when Nord Gold submitted a non-binding indicative and conditional proposal to acquire all the issued share capital of Cardinal at a price of $0.32 per share.
This was then superseded on June 18 by Shandong, which proposed an off-market takeover at a price of $0.43 per share, representing a 31.1 per cent premium over Nord Gold’s proposal.
Nord Gold then bounced back, with an offer on July 15 to acquire Cardinal’s shares at a price of $0.47 per share. This represents a 10 per cent increase over Shandong’s earlier counter-offer.
Shandong’s proposal, which has been unanimously supported by Cardinal’s Board of Directors, represents a 6.1 per cent premium compared to Nord Gold’s highest bid.
In today’s announcement, Cardinal outlined a number of reasons behind its push for shareholders to accept the offer. The company said it would assist in mitigating a number of financial, permitting and operational risks, and that it funding requirements would be avoided regarding its Namdini Project and associated equity dilution.
Cardinal also drew attention to the fact that no superior proposal has emerged to date, and that it did not foresee any risks associated with the acceptance of the offer.
The company’s shareholders have until October 13, 2020, to indicate their preferred decision.
Cardinal Resources (CDV) is currently down 1.43 per cent and is trading at 69 cents per share at 9:52am EDT.