SDL 0.00% 0.6¢ sundance resources limited

sundance battles to reject low-ball offer

  1. 2,088 Posts.
    The majority of us here agree the offer is far too low and undervalues the company. I cannot blame Hanlong though for having a go at a low ball offer - they are taking a punt and even though it's highly unlikely to come off, it was worth a try.

    I expect an announcement from SDL later this week rejected Hanlong's offer.

    The fun and games have only begun for us holders.

    Good luck to all.

    A LITTLE more than a year ago the Perth-based iron ore developer Sundance Resources was scrambling to get back on track after a plane crash in West Africa killed its entire board.

    Now it is shaping up in a battle to ensure a low-ball, 50 cents a share or $1.4 billion bid from its biggest shareholder, the Chinese-controlled and financed resources investor Hanlong Mining, does not gain traction.

    Sundance has not slammed the door on the highly conditional approach from the acquisitive Hanlong, with a meeting planned for later in the week. But George Jones, the former chairman of Sundance, who resumed the position after the plane crash, said the offer as it stood did ''not provide adequate value or certainty to Sundance shareholders''.

    Sundance will now push for a higher offer while also entertaining what could come from its search for a strategic partner to help make its planned $US4.6 billion ($A4.3 billion) stage-one development of the Mbalam iron ore project, which straddles Cameroon and the Republic of Congo, a reality.

    Five mainly Chinese groups have been reported to be interested in taking as much as a 50 per cent share in Mbalam and helping with its financing needs.

    Late last month the potential partners and several Chinese banks visited Mbalam to finalise their due-diligence work.

    Expectations for a decision soon on a strategic partner for the development of Mbalam have raised speculation that Hanlong made its offer to head off what might well be a much more attractive proposition for Sundance shareholders.

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