Cardinal Resources has responded to takeover bids from Nordgold and Shandong Gold, urging shareholders to accept an offer from the latter.
Cardinal is encouraging its shareholders to accept an improved proposal for an off-market takeover offer from Shandong Gold to purchase all remaining shares in Cardinal for $1 per share, which values the target company at around $565.6 million.
The company urged shareholders to reject Nordgold’s on-market takeover bid at 90 cents cash per share.
Cardinal stated that the Shandong Gold offer “represents an attractive premium of approximately 11.1 per cent to the revised Nordgold takeover bid of $0.90 cash per share”.
The Shandong Gold offer is only subject to standard market conditions, and is not subject to Chinese regulatory approvals or foreign investment review board approval.
Cardinal has now entered into an agreement with Shandong Gold and Shandong Gold Mining to amend the bid implementation agreement to match the revised version, which includes the $1 per share price.
“The Cardinal directors who own or control shares in Cardinal intend to accept the improved Shandong Gold offer in respect of all of the shares they own or control on Monday, September 14 2020, subject to there being no superior proposal,” the company stated.