Sundance Says China Bidder Hanlong Missed A$5 Million PaymentElisabeth Behrmann
Sundance Resources Ltd., which last month flagged that a A$1.14 billion ($1.2 billion) bid by Sichuan Hanlong Group may be scrapped, said the Chinese company failed to make a A$5 million agreed payment.
Hanlong was due to make a tranche payment by yesterday under a convertible note facility, the Perth-based company said today in a statement. Sundance has issued a “demand notice” saying it must make the payment no later than April 8.
The bid by closely held Hanlong, whose billionaire Chairman Liu Han reportedly is in police custody after going missing last month, may unravel after Chengdu-based Hanlong failed to meet a March 26 funding deadline for the takeover. Sundance needs an investment of $4.7 billion for its Mbalam project, straddling the border between Cameroon and Republic of Congo.
The companies remain in incomplete and confidential talks, Sundance said. Either party may terminate the deal during a 10-business day period which starts on April 8, the company said.
Sundance’s shares were suspended March 19 after trading in Sydney at 21 cents, below Hanlong’s offer of 45 cents a share, signaling investors don’t expect the deal to succeed. Hanlong, which holds about 14 percent of Sundance, according to data compiled by Bloomberg, in August cut its bid for Sundance by 21 percent to 45 cents. The shares have fallen more than 46 percent since Nov. 30.