The Cardinal Resources Ltd (ASX: CDV) share price has dropped by almost 2% this morning, as the possibility of the company’s takeover remains uncertain just two days before an offer deadline.
This comes after one of its takeover suitors, Nord Gold, reminded Cardinal shareholders that the deadline for its offer is on 23 December.
The Cardinal share price is currently trading at $1.06, down 2 cents.
Three-way deadlock
Nord Gold reminded shareholders of the impending deadline, saying that “Cardinal shareholders who want to benefit from Nord Gold’s prompt payment terms (two trading days after selling to Nord Gold), must sell their shares on-market before Nord Gold’s offer closes on 23 December.
Cardinal Resources has been pursued as a takeover target by three different companies, all with the same offer price of $1.05.
In June, Cardinal received a takeover bid from Hong Kong-based Shandong Gold at an offer price of 60 cents per share, valuing the company at around $300 million.
The Chinese company, which is the second-largest gold producer in China, then increased its offer price for Cardinal to $1.00 per share in September, later increasing it again to $1.05 in November.
That higher offer was meant to outbid another interested party, Nord Gold, a Russian gold miner which had previously increased its own offer from 60 cents to 90 cents a share. Nord Gold also increased its offer price to $1.05 on 11 December.
Cardinal was also approached by another suitor in November, in the form of a Ghana-based company, Engineers & Planners Company Limited. That offer also stood at $1.05 per share.
About the Cardinal Resources share price
Cardinal is a West African gold‐focused exploration and mining company that holds interests in tenements within Ghana, West Africa.
The company is focused on the development of the Namdini Gold Project, and released its feasibility study on 28 October 2019. The study concluded the project had an ore reserve of approximately 5.1 million ounces.
The Cardinal share price has risen by over 230% this year. It began the year at 32 cents before rising to today’s level. The company currently commands a market capitalisation of $592 million.
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More reading
- Cardinal Resources (ASX:CDV) share price rises on 3-way takeover deadlock
- Cardinal Resources (ASX:CDV) share price lifts after third takeover bid
Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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