DJ Hanlong Lowers Sundance Offer to A$0.45/Share...

DJ Hanlong Lowers Sundance Offer to A$0.45/Share -Sources

14/08/2012 02:25PM AEST


By Gillian Tan


China's Hanlong Mining has reduced its offer for Sundance Resources to 1.37 billion Australian dollars (US$1.44 billion), a 21.5% discount to its recommended 57 Australian cents a share offer, people familiar with the matter said.

It is the second time Hanlong has reduced its offer this month amid weak iron-ore prices. On August 1, a separate person familiar with the matter said Sundance's board of directors was prepared to recommend a reduced offer of 50 Australian cents a share.

The revised offer is 45 Australian cents a share, one of the people said, adding that negotiations were continuing.

Sundance earlier this month said China's National Development and Reform Commission had provisionally approved Hanlong's proposed takeover of ASX-listed iron ore explorer, on the condition the acquisition price was "reasonable."

The company, which owns the Mbalam iron-ore project on the border of the Republic of Cameroon and the Republic of Congo, has been targeting a completion of the takeover in November. The project aims to mine 35 million metric tons of iron ore annually, making it an attractive prospect to reduce China's dependence on Australia for the key raw materials used in steelmaking.

Sundance shares--which remain suspended amid the continuing negotiations--last traded at 33.5 Australian cents a share.


-Rhiannon Hoyle contributed to this story