The 4-way takeover battle for Cardinal Resources Ltd (ASX: CDV) has finally been declared over today, with Chinese miner Shandong Gold being declared the winner.
In a release to the market this morning, Cardinal said Shandong has acquired in excess of 50% of its shares at $1.075 per share, effectively controlling the company.
The Cardinal share price last closed at $1.08 on 24 December, and is expected to trade today at the $1.075 level.
What was announced?
In light of this development regarding Shandong, Cardinal has today said that all other takeover offers are now off the table, and are no longer an option for shareholders.
According to the release, the Russian miner Nordgold, which has so far acquired around 20% of Cardinal shares, has also now accepted the Shandong offer on 24 December. Nordgold’s last offer was at $1.05.
The $1.20 offer from Dongshan Investments will also no longer be considered as the acceptance condition of 50.1% ownership will no longer be possible, given that Shandong has acquired more than 50% of the shares.
Finally, the $1.05 offer from Ghanaian company Engineers & Planners will also be considered void as its acceptance condition of 50.1% can no longer be met.
4-way deadlock
Cardinal Resources has been pursued as a takeover target by four different companies.
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, Nordgold, 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 then 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.
And just before Christmas, Cardinal received an offer from an Emirati-Russian investment house, Dongshan Investments, at $1.20 per share.
Cardinal is a West African gold‐focused exploration and mining company that holds the prized Namdini Gold Project in Ghana.
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More reading
- Cardinal Resources (ASX:CDV) share price drops as takeover deadline looms
- Cardinal Resources (ASX:CDV) share price rises on 3-way takeover deadlock
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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