Sundance Resources Ltd. rose to the highest in almost two months in Sydney trading after Sichuan Hanlong Group gained key support for its A$1.14 billion ($1.18 billion) bid for the rest of the Australian iron ore developer.
Sundance added 2.9 percent to 35 Australian cents at the close, the highest since Aug. 28. That’s still 22 percent less than Hanlong’s offer of 45 cents a share. It had risen as much as 12 percent, as the S&P/ASX 200 Index fell 0.7 percent.
Hanlong obtained in principle agreement from China Development Bank to provide a debt facility of as much as $1.02 billion for the takeover bid, as well as approval from Bank of Deyang Co. for loans to finance the balance, Perth-based Sundance said today in a statement. The parties aim to close the deal by Jan. 8, Sundance said.
Hanlong, a Chinese investor in highway and power projects, won support from Sundance’s board in August for its reduced bid of 45 cents a share for the rest of the company. Hanlong already owns about 17 percent of Sundance, according to data compiled by Bloomberg. Buying Sundance will give Hanlong control of the $4.7 billion Mbalam rail, port and mine project at the borders of Cameroon and the Republic of Congo.