Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>Back on the 18th October, gold miner <a href="https://www.smartkarma.com/entities/ramelius-resources-ltd" target="_blank" data-smartkarma-citation="entities:5968:1" rel="noopener">Ramelius Resources (RMS AU)</a> made a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02436827-6A1056350?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">recommended takeover offer</a> for <a href="https://www.smartkarma.com/entities/apollo-consolidated-ltd" target="_blank" data-smartkarma-citation="entities:10021:1" rel="noopener">Apollo Consolidated (AOP AU)</a>, by way of cash and scrip, at A$0.56/share, a 27% premium to Apollo's 3-day VWAP. Apollo shareholders would receive 0.1375 Ramelius shares plus cash of $0.34 for every Apollo share held, in a roughly 39%/61% scrip/cash split. The Offer had the unanimous backing of Apollo's board, and Apollo directors holding 13.7% of shares out would tender their shares into the Offer. The Offer was conditional on 90% minimum acceptance by Apollo shareholders.</p>
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<p>This looked like a done deal.</p>
<p>Then on the 21 October <a href="https://www.smartkarma.com/entities/gold-road-resources-ltd" target="_blank" data-smartkarma-citation="entities:6698:1" rel="noopener">Gold Road Resources (GOR AU)</a> made an unconditional off-market all-cash Offer  - <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02438747-6A1057185?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">at A$0.56/share</a>. Gold Road, holding 19.9% at the time of the announcement, also stood in the market at $0.56/share. </p>
<p>Yesterday, Ramelius bumped its Offer to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02445673-2A1335292?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$0.62/share</a> comprising $0.34/share in cash plus 0.1778 Ramelius shares for Apollo shares. Ramelius also secured binding agreements to acquire a 19.9% shareholding in Apollo from Apollo’s board and Apollo’s second-largest shareholder.</p>
<p>The Bidder's Statement has been <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02446051-6A1060474?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">dispatched</a>, with a first closing date is on the 3 December. </p>
<p>The Offer is unconditional.</p>
<p>More below the fold.</p>
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Back on the 18th October, gold miner Ramelius Resources (RMS AU) made a recommended takeover offer for Apollo Consolidated (AOP AU), by way of cash and scrip, at A$0.56/share, a 27% premium to Apollo's 3-day VWAP. Apollo shareholders would receive 0.1375 Ramelius shares plus cash of $0.34 for every Apollo share held, in a roughly 39%/61% scrip/cash split. The Offer had the unanimous backing of Apollo's board, and Apollo directors holding 13.7% of shares out would tender their shares into the Offer. The Offer was conditional on 90% minimum acceptance by Apollo shareholders.


This looked like a done deal.
Then on the 21 October Gold Road Resources (GOR AU) made an unconditional off-market all-cash Offer  - at A$0.56/share. Gold Road, holding 19.9% at the time of the announcement, also stood in the market at $0.56/share. 
Yesterday, Ramelius bumped its Offer to A$0.62/share comprising $0.34/share in cash plus 0.1778 Ramelius shares for Apollo shares. Ramelius also secured binding agreements to acquire a 19.9% shareholding in Apollo from Apollo’s board and Apollo’s second-largest shareholder.
The Bidder's Statement has been dispatched, with a first closing date is on the 3 December. 
The Offer is unconditional.
More below the fold.


Apollo (AOP AU)'s Shares Trading Through Ramelius' Revised Offer

<p>A little under an hour after Nord Gold announced it had <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02326509-6A1014166?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">closed its Offer</a> - citing the indicative $1.075/share Offer from <a href="https://www.smartkarma.com/entities/shandong-gold-mining-co-ltd-61153493-5437-47ee-a8d3-aec41fb7f1da" target="_blank" data-smartkarma-citation="entities:27455:1" rel="noopener">Shandong Gold Mining Co., Ltd. (1787 HK)</a> was beyond what it could justify - Dongshan, an Emirati-Russian JV, <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02326574-6A1014186?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> its intention to make an off-market cash bid for <a href="https://www.smartkarma.com/entities/cardinal-resources-ltd" target="_blank" data-smartkarma-citation="entities:12256:1" rel="noopener">Cardinal Resources (CDV AU)</a> at A$1.20/share. a 12% premium to Shandong's current offer of A$1.075/share.  </p>
<p>Dongshan's Offer is subject to:</p>
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<li>Dongshan obtaining a relevant interest of 50.1%;</li>
<li>FIRB, Ghana approvals;</li>
<li>Dongshan securing committed financing'; and</li>
<li>Project due diligence.</li>
</ul>
<p>Cardinal advises shareholders to take no action at this time. This is as yet an indicative, highly conditional Offer, not a firm proposal.</p>
<p>More below the fold.</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/179/984/original/image_78183222561608782971156.png?1608782971" class="editor-image img-responsive" data-smartkarma-image-id="179984"></figure>
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<h3>Past insights on Cardinal:</h3>
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<table class="table table-striped">
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<h3>Date</h3>
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<td style="width: 484.782px;">
<h3>Insight</h3>
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<td style="width: 218.75px;">22-Jun-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/sVxVB" target="_blank" rel="noopener">Shandong's Competing Offer For Cardinal</a></em></td>
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<td style="width: 218.75px;">15-Jul-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/E1Wgv" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Nordgold Reloads</a></em></td>
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<td style="width: 218.75px;">23-Jul-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/tVkqj" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer</a></em></td>
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<td style="width: 218.75px;">2-Sep-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/eGXfx" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:</a></em></td>
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<td style="width: 218.75px;">7-Sep-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/4gYtj" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer</a></em></td>
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<td style="width: 218.75px;">22-Oct-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/3cYHs" target="_blank" rel="noopener">Cardinal Resources: Nordgold's "Competing Offer"</a></em></td>
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<td style="width: 218.75px;">25-Nov-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/o176q" target="_blank" rel="noopener">Cardinal Resources: Three's A Crowd</a></em></td>
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<td style="width: 218.75px;">23-Dec-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/DK1qv" target="_blank" rel="noopener">Cardinal Resources: Shandong's Indicative Bump</a></em></td>
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A little under an hour after Nord Gold announced it had closed its Offer - citing the indicative $1.075/share Offer from Shandong Gold Mining Co., Ltd. (1787 HK) was beyond what it could justify - Dongshan, an Emirati-Russian JV, announced its intention to make an off-market cash bid for Cardinal Resources (CDV AU) at A$1.20/share. a 12% premium to Shandong's current offer of A$1.075/share.  
Dongshan's Offer is subject to:

Dongshan obtaining a relevant interest of 50.1%;
FIRB, Ghana approvals;
Dongshan securing committed financing'; and
Project due diligence.

Cardinal advises shareholders to take no action at this time. This is as yet an indicative, highly conditional Offer, not a firm proposal.
More below the fold.






Past insights on Cardinal:









Date


Insight



22-Jun-20
Shandong's Competing Offer For Cardinal


15-Jul-20
Cardinal Resource (CDV AU): Nordgold Reloads


23-Jul-20
Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer


2-Sep-20
Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:


7-Sep-20
Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer


22-Oct-20
Cardinal Resources: Nordgold's "Competing Offer"


25-Nov-20
Cardinal Resources: Three's A Crowd


23-Dec-20
Cardinal Resources: Shandong's Indicative Bump







Cardinal Resources (CDV AU). Exit Nord Gold, Enter Dongshan.

<p>The pointy end of this deal gets pointier.</p>
<p>On the 25 November,  Ghanaian firm Engineers &amp; Planners Company formally <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02312766-6A1008633?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">launched</a> a A$1.05/share all-cash offer. <a href="https://www.smartkarma.com/entities/shandong-gold-mining-co-ltd-61153493-5437-47ee-a8d3-aec41fb7f1da" target="_blank" data-smartkarma-citation="entities:27455:1" rel="noopener">Shandong Gold Mining Co., Ltd. (1787 HK)</a> immediately <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02312766-6A1008633?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumped</a> its Offer to A$1.05/share. On the 11 December, Nordgold raised its Offer to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02321283-6A1012105?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.05/share</a>.</p>
<h3>The Newest News</h3>
<p>Shandong has now <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02325410-6A1013747?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it will increase its Offer to A$1.075/share <em>provided</em> it holds at least 30% of Cardinal shares by the 31 December AND Nordgold's on-market Offer is not extended beyond the 23 December.</p>
<p>This transaction continues to drill down into the nuances and minutiae of the takeover rules under the Corporations Act.</p>
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<p>More below the fold.</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/179/910/original/image_7949790241608693879122.png?1608693879" class="editor-image img-responsive" data-smartkarma-image-id="179910"></figure>
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<h3>Past insights on Cardinal:</h3>
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<table class="table table-striped">
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<h3>Insight</h3>
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<td style="width: 218.75px;">22-Jun-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/sVxVB" target="_blank" rel="noopener">Shandong's Competing Offer For Cardinal</a></em></td>
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<td style="width: 218.75px;">15-Jul-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/E1Wgv" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Nordgold Reloads</a></em></td>
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<td style="width: 218.75px;">23-Jul-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/tVkqj" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer</a></em></td>
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<td style="width: 218.75px;">2-Sep-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/eGXfx" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:</a></em></td>
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<td style="width: 218.75px;">7-Sep-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/4gYtj" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer</a></em></td>
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<td style="width: 218.75px;">22-Oct-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/3cYHs" target="_blank" rel="noopener">Cardinal Resources: Nordgold's "Competing Offer"</a></em></td>
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<td style="width: 218.75px;">25-Nov-20</td>
<td style="width: 484.782px;"><em><a href="https://skr.ma/o176q" target="_blank" rel="noopener">Cardinal Resources: Three's A Crowd</a></em></td>
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</section>

The pointy end of this deal gets pointier.
On the 25 November,  Ghanaian firm Engineers &amp; Planners Company formally launched a A$1.05/share all-cash offer. Shandong Gold Mining Co., Ltd. (1787 HK) immediately bumped its Offer to A$1.05/share. On the 11 December, Nordgold raised its Offer to A$1.05/share.
The Newest News
Shandong has now announced it will increase its Offer to A$1.075/share provided it holds at least 30% of Cardinal shares by the 31 December AND Nordgold's on-market Offer is not extended beyond the 23 December.
This transaction continues to drill down into the nuances and minutiae of the takeover rules under the Corporations Act.

More below the fold.






Past insights on Cardinal:










Date


Insight



22-Jun-20
Shandong's Competing Offer For Cardinal


15-Jul-20
Cardinal Resource (CDV AU): Nordgold Reloads


23-Jul-20
Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer


2-Sep-20
Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:


7-Sep-20
Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer


22-Oct-20
Cardinal Resources: Nordgold's "Competing Offer"


25-Nov-20
Cardinal Resources: Three's A Crowd









Cardinal Resources: Shandong's Indicative Bump

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<p>On the 21 October, Nordgold increased its Offer price to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02296571-6A1002232?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.00/share</a>, matching <a href="https://www.smartkarma.com/entities/shandong-gold-mining-co-ltd-61153493-5437-47ee-a8d3-aec41fb7f1da" target="_blank" data-smartkarma-citation="entities:27455:1" rel="noopener">Shandong Gold Mining Co., Ltd. (1787 HK)</a>'s $1.00/share bid on the 7 September. But matters shortly turned sour: did Nordgold's improved Offer constitute a higher competing offer? Shandong says <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02297278-6A1002505?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">yes</a>. Nordgold says no. </p>
<p>The crux of the issues centred on Shandong's Second Supplementary Bidder's Statement on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02295721-6A1001904?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">19 October</a>, in which Shandong stated that its $1.00/share offer price is "<em>best and final in the absence of a higher competing offer</em>." </p>
<p>Cardinal added on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02296161-6A1002062?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">20 October</a> that "<em>unless there is a higher competing offer to the Shandong Gold Offer (whether from Nordgold or a third party), Shandong Gold cannot increase its offer price</em>". </p>
<p>After Nordgold's matching bid, Cardinal <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02296759-6A1002302?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> that "<em>Nordgold has made a higher competing offer by increasing the Offer Price of the Nordgold Takeover Bid to A$1.00 cash per share (previously A$0.90 can per share)"</em>. </p>
<p>In its submission to the Takeovers Panel (TP) on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02297975_PS-6A1002769?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">23 October</a>, Nordgold considered Cardinal's statement to be misleading and/or deceptive, and sought a correction. </p>
<p>A number of takeover applications ensued, so much so, Cardinal resorted to an <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02304400-6A1005622?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announcement</a> on the 4 November summarising these applications. There was no definitive conclusion at this juncture. And so it has dragged on, with at least another four TP updates from the summary announcement. </p>
<h3>The New News</h3>
<p>This morning Ghanaian firm Engineers &amp; Planners Company formally <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02312766-6A1008633?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">launched</a> a A$1.05/share all-cash offer.</p>
<p>At 4.24pm, Nordgold released a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02313088-6A1008768?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">statement</a> that E&amp;P's Offer is not an "offer" nor a "competing offer", therefore it does not free either Nordgold or Shandong from their Best and Final Statements. </p>
<p>Unfazed, Shandong <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02312766-6A1008633?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">bumped</a> its Offer to A$1.05/share 43 minutes later.</p>
<p>More below the fold.</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/173/736/original/image_63795557821606227977871.png?1606227979" class="editor-image img-responsive" data-smartkarma-image-id="173736"></figure>
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<p>Past insights on Cardinal:</p>
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<table class="table table-striped">
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<h3>Insight</h3>
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<td style="width: 218.75px;">22-Jun-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/sVxVB" target="_blank" rel="noopener">Shandong's Competing Offer For Cardinal</a></td>
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<td style="width: 218.75px;">15-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/E1Wgv" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Nordgold Reloads</a></td>
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<td style="width: 218.75px;">23-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/tVkqj" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer</a></td>
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<td style="width: 218.75px;">2-Sep-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/eGXfx" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:</a></td>
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<td style="width: 218.75px;">7-Sep-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/4gYtj" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer</a></td>
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<td style="width: 218.75px;">22-Oct-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/3cYHs" target="_blank" rel="noopener">Cardinal Resources: Nordgold's "Competing Offer"</a></td>
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On the 21 October, Nordgold increased its Offer price to A$1.00/share, matching Shandong Gold Mining Co., Ltd. (1787 HK)'s $1.00/share bid on the 7 September. But matters shortly turned sour: did Nordgold's improved Offer constitute a higher competing offer? Shandong says yes. Nordgold says no. 
The crux of the issues centred on Shandong's Second Supplementary Bidder's Statement on the 19 October, in which Shandong stated that its $1.00/share offer price is "best and final in the absence of a higher competing offer." 
Cardinal added on the 20 October that "unless there is a higher competing offer to the Shandong Gold Offer (whether from Nordgold or a third party), Shandong Gold cannot increase its offer price". 
After Nordgold's matching bid, Cardinal announced that "Nordgold has made a higher competing offer by increasing the Offer Price of the Nordgold Takeover Bid to A$1.00 cash per share (previously A$0.90 can per share)". 
In its submission to the Takeovers Panel (TP) on the 23 October, Nordgold considered Cardinal's statement to be misleading and/or deceptive, and sought a correction. 
A number of takeover applications ensued, so much so, Cardinal resorted to an announcement on the 4 November summarising these applications. There was no definitive conclusion at this juncture. And so it has dragged on, with at least another four TP updates from the summary announcement. 
The New News
This morning Ghanaian firm Engineers &amp; Planners Company formally launched a A$1.05/share all-cash offer.
At 4.24pm, Nordgold released a statement that E&amp;P's Offer is not an "offer" nor a "competing offer", therefore it does not free either Nordgold or Shandong from their Best and Final Statements. 
Unfazed, Shandong bumped its Offer to A$1.05/share 43 minutes later.
More below the fold.





Past insights on Cardinal:








Date


Insight



22-Jun-20
Shandong's Competing Offer For Cardinal


15-Jul-20
Cardinal Resource (CDV AU): Nordgold Reloads


23-Jul-20
Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer


2-Sep-20
Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:


7-Sep-20
Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer


22-Oct-20
Cardinal Resources: Nordgold's "Competing Offer"









































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<p>In its second supplementary bidder's statement on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02295721-6A1001904?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">19 October</a>, <a href="https://www.smartkarma.com/entities/shandong-gold-mining-co-ltd-61153493-5437-47ee-a8d3-aec41fb7f1da" target="_blank" data-smartkarma-citation="entities:27455:1" rel="noopener">Shandong Gold Mining Co., Ltd. (1787 HK)</a> said its $1.00/share off-market unconditional offer was "<em>best and final in the absence of a higher competing offer</em>". The practical effect of this statement is that unless there is a higher competing Offer than Shandong's offer, Shandong cannot increase its offer price. </p>
<p>Shandong's offer is unanimously supported by Cardinal's board. As per its most recent regulatory filing, Shandong held <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02292439-6A1000653?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">11.86%</a> in Cardinal.</p>
<p>At the time of the "best and final" statement, Nordgold's Offer was $0.90/share, an Offer that was expected to close on the 3 November (after its <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02294128-6A1001310?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">fourth extension</a>), unless extended. Nordgold held <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02276760-6A994412?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">28.39%</a> as per its recent regulatory filing on the 2 September. Cardinal viewed Nordgold's Offer as being inferior to Shandong's. Furthermore, Cardinal considered the lack of price increase from Nordgold since Shandong's revised Offer could result in unwarranted delays in the development the Namdini project, and will "<em>continue to frustrate the decision-making process for Cardinal's shareholders</em>". </p>
<h3>New News</h3>
<p>Yesterday, Nordgold increased its Offer rice to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02296571-6A1002232?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.00/share</a>. </p>
<p>But then it gets messy - does Nordgold's improved Offer constitute a higher competing offer? Shandong says <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02297278-6A1002505?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">yes</a>. Nordgold says no. </p>
<p>The fact Nordgold matched Shandong's offer after six weeks of crunching numbers suggests we are approaching full value for Cardinal.</p>
<p>In the meanwhile, Cardinal continues to recommend shareholders accept Shandong's Offer.</p>
<p>As always, more below the fold.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/166/636/original/image_18779035421603327929176.png?1603327931" class="editor-image img-responsive" data-smartkarma-image-id="166636"></figure>
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<p><em>Past insights on Cardinal:</em></p>
</div>
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<table class="table table-striped">
<tbody>
<tr>
<td style="width: 218.75px;">
<h3>Date</h3>
</td>
<td style="width: 484.782px;">
<h3>Insight</h3>
</td>
</tr>
<tr>
<td style="width: 218.75px;">22-Jun-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/sVxVB" target="_blank" rel="noopener">Shandong's Competing Offer For Cardinal</a></td>
</tr>
<tr>
<td style="width: 218.75px;">15-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/E1Wgv" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Nordgold Reloads</a></td>
</tr>
<tr>
<td style="width: 218.75px;">23-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/tVkqj" target="_blank" rel="noopener">Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer</a></td>
</tr>
<tr>
<td style="width: 218.75px;">2-Sep-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/eGXfx" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:</a></td>
</tr>
<tr>
<td style="width: 218.75px;">7-Sep-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/4gYtj" target="_blank" rel="noopener">Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer</a></td>
</tr>
</tbody>
</table>
</div>
</div>
</div>


In its second supplementary bidder's statement on the 19 October, Shandong Gold Mining Co., Ltd. (1787 HK) said its $1.00/share off-market unconditional offer was "best and final in the absence of a higher competing offer". The practical effect of this statement is that unless there is a higher competing Offer than Shandong's offer, Shandong cannot increase its offer price. 
Shandong's offer is unanimously supported by Cardinal's board. As per its most recent regulatory filing, Shandong held 11.86% in Cardinal.
At the time of the "best and final" statement, Nordgold's Offer was $0.90/share, an Offer that was expected to close on the 3 November (after its fourth extension), unless extended. Nordgold held 28.39% as per its recent regulatory filing on the 2 September. Cardinal viewed Nordgold's Offer as being inferior to Shandong's. Furthermore, Cardinal considered the lack of price increase from Nordgold since Shandong's revised Offer could result in unwarranted delays in the development the Namdini project, and will "continue to frustrate the decision-making process for Cardinal's shareholders". 
New News
Yesterday, Nordgold increased its Offer rice to A$1.00/share. 
But then it gets messy - does Nordgold's improved Offer constitute a higher competing offer? Shandong says yes. Nordgold says no. 
The fact Nordgold matched Shandong's offer after six weeks of crunching numbers suggests we are approaching full value for Cardinal.
In the meanwhile, Cardinal continues to recommend shareholders accept Shandong's Offer.
As always, more below the fold.




Past insights on Cardinal:








Date


Insight



22-Jun-20
Shandong's Competing Offer For Cardinal


15-Jul-20
Cardinal Resource (CDV AU): Nordgold Reloads


23-Jul-20
Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer


2-Sep-20
Cardinal Resources (CDV AU): Nordgold's Knockout Offer. Read more:


7-Sep-20
Cardinal Resources (CDV AU): Shandong Trumps Nordgold’s Knockout Offer







Cardinal Resources: Nordgold's "Competing Offer"

Australia

Cardinal Resources Limited operates as a mineral exploration and development company in Ghana, West Africa. The Company also develops multiple projects through expansion drilling programs, pre-feasibility studies, and metallurgical test work. Cardinal Resources serves customers in Australia, Canada, and West Africa.

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Cardinal Resources Ltd (CDV CN)

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Cardinal Resources: Nordgold's "Competing Offer"

Nordgold bumps its Offer to match Shandong's, but there is a question mark whether this constitutes a "competing offer". Irrespective, pricing is...

David Blennerhassett

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