PERTH (miningweekly.com) – The directors of takeover target Cardinal Resources have urged shareholders to accept the revised offer from Shandong Gold.
Shandong earlier this week increased its offer price for Cardinal from 70c a share to A$1 a share, outbidding shareholder Nordgold, which had increased its own offer for Cardinal from 60c a share to 90c a share.
The improved Shandong offer valued Cardinal at approximately A$565.6-million on a fully diluted basis, representing a premium of 11.1% to Nordgold’s revised bid.
Cardinal told shareholders on Tuesday that the company had carefully considered the improved Shandong gold offer in detail, and given the superior price to the Nordgold takeover bid, the company urged shareholders to accept the improved Shandong offer.
The Shandong offer remained subject to a 50.1% minimum acceptance condition.