Sundance, Hanlong Bid Target, Remains in African Partner Talks
Sundance Resources Ltd., subject of A$1.2 billion ($1.3 billion) takeover bid from its biggest shareholder Sichuan Hanlong Group, remains in talks with potential partners for its iron-ore project in Africa.
“I am in discussions with various parties every other day,” George Jones, chairman of the Perth-based company, told reporters today at a conference in Western Australia. “At the same time, we’re engaged in talks with Hanlong to try and make it more palatable to shareholders.”
Sundance said last month the bid from Hanlong undervalued the company, which is seeking to develop the $4.7 billion Mbalam mine, port and railroad project that straddles the border of Cameroon and Republic of Congo. Jones said he doesn’t expect Hanlong, which owns 18.6 percent of Sundance, to bypass the board and put its offer directly to shareholders.
“We’re fundamentally not opposed to the concept as long as they get all the numbers right and drop all the conditions,” Jones said, referring to the bid.
Sundance shares dropped 1.9 percent to 51 cents at the 4:10 p.m. close in Sydney trading, compared with the 50 cents-a-share cash bid from Hanlong. Sundance closed at 40 cents on July 15, the last trading day before the offer.
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