Sundance, Hanlong Conclude Good Faith Consultation Period on BidElisabeth Behrmann
Sundance Resources Ltd., which said last month a A$1.14 billion ($1.2 billion) takeover bid by Sichuan Hanlong Group may be scrapped, concluded a period of discussions with its suitor.
The outcome of the good faith consultation with the Chinese company is being documented and an announcement is expected on April 9, Perth-based Sundance said today in a statement. The companies entered a five-day consultation period under the terms agreement after Hanlong missed a March 26 funding deadline.
Closely-held Hanlong’s billionaire Chairman Liu Han reportedly is in police custody after going missing last month. Sundance needs an investment of $4.7 billion for its Mbalam project located on the Cameroon and Republic of Congo border.
“Sundance has concluded in principle the outcomes of the matters discussed with Hanlong in the good faith consultation period,” according to the statement. “This requires ratification and signature by the parties and includes a requirement for translation into Chinese and execution in China.”
Sundance asked for a share trading halt to be extended to April 9. The shares were suspended on March 19 after trading at 21 cents in Sydney, below Hanlong’s offer of 45 cents a share. That signaled 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. Sundance shares have fallen more than 46 percent since Nov. 30.