Cardinal Resources Ltd (ASX:CDV) (TSE:CDV) (OTCMKTS:CRDNF) has received a revised and improved takeover offer proposal from Shandong Gold Mining (Hong Kong) Co Limited of A$0.70 per share, up from A$0.60.
The improved proposal for the off-market takeover is now being considered in detail by the Cardinal board, together with the Special Committee and its financial and legal advisers.
‘Take no action’
While the company will also be engaging with Shandong Gold Mining Co Ltd (HKG:1787) in respect of the revised proposal, the board advises shareholders to take no action in relation to their shares at this time.
This recommendation will allow time for consideration of the improved offer while the company also notes the competing on-market takeover offer at A$0.66 cash per share from Nord Gold SE announced on the ASX on July 15, 2020.
Shares in the pre-development gold company last traded at $A0.72 and have risen from A$0.46 on the day of the original Shandong offer.
Subject to conditions
Cardinal notes the improved Shandong Gold offer remains subject to a number of conditions, including regulatory approvals in Australia (FIRB) and in China.
Shandong Gold has advised Cardinal that it expects to receive certain of the Chinese regulatory approvals imminently.
These conditions are set out in Cardinal’s announcement of the Bid Implementation Agreement announced on June 18, 2020.
Cardinal says it will provide an update to shareholders as soon as practicable.
The company’s joint financial advisors are Maxit Capital LP, BMO Capital Markets, Hartleys Limited and Cannacord Genuity Corp.
Its legal advisors are HopgoodGanim Lawyers (Australia) and Bennett Jones LLP (Canada).