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- U.K-based gold producer Nord Gold has extended the offer period for its on-market takeover bid for Cardinal Resources (CDV)
- The original offer period was set to close on August 31, but will now extend until the close of trade on September 10
- Two international companies have been in the hunt to acquire Cardinal Resources and its projects in Ghana, West Africa
- Nord Gold made an initial non-binding offer back in mid-March at 45.775 cents per share
- Hong Kong-based Shandong Gold then entered the fray with a higher 60-cent per share bid
- Nord Gold countered at 66 cents per share, before Cardinal’s board endorsed Shandong’s final offer of 70 cents per share
- Shandong’s bid now has Foreign Investment Review Board approval and the only possible impediment to the takeover is Cardinal shareholder approval
- Cardinal Resources closed Monday’s session grey at 72 cents per share
U.K-based gold producer Nord Gold has extended the offer period for its on-market takeover bid for Cardinal Resources (CDV).
The original offer period was set to close on August 31, but will now extend until the close of trade on September 10.
Competition
Two international companies have been in the hunt to acquire Cardinal Resources and its projects in Ghana, West Africa.
Nord Gold made an initial non-binding offer back in mid-March after acquiring a 16.4 per cent share of CDV from Goldfields Limited, bringing Nord Gold’s total share to 19.9 per cent.
At that time Nord Gold offered 45.775 cents per share in cash to acquire the rest of Cardinal’s issued capital.
Since then a bidding war has ensued between Nord Gold and Hong Kong-based business Shandong Gold.
Shandong entered the fray in mid-June, with an offer of 60 cents per Cardinal share — a 31.1 per cent premium to Nord Gold’s offer.
Nord Gold responded with a 66-cent offer on July 15, raising the stakes by a further 10 per cent.
Cardinal was quick to advise shareholders to take no action on the Nord Gold bid, as it was unsolicited and CDV had obligations under a bid implementation agreement with Shandong.
The board has since endorsed a revised off-market takeover bid from Shandong, advising shareholders to accept the 70-cent bid and reject Nord Gold’s offer.
Next steps
Nord Gold is seemingly trying to stay in the game despite Shandong recently receiving Foreign Investment Review Board approval for the Cardinal takeover.
Shandong is now waiting for approval from a 50.1 per cent majority of Cardinal’s shareholders before the takeover bid can be finalised.
Cardinal Resources closed Monday’s session grey at 72 cents per share.
