Market Wrap - Street Talk Sundance saga approaches climax sarah thompson and anthony macdonald 235 words 7 January 2013 The Australian Financial Review AFNR Second 12 English Copyright 2013. Fairfax Media Management Pty Limited.
It hasn't been quick or easy but the battle for Sundance Resources appears finally to be coming to a close.
The proxy votes for the December shareholder meeting to decide on China's Hanlong Mining's offer for Sundance were strongly in favour of the deal. It is understood more than more than three-quarters of the required number liked the idea of the deal, pitched at 45¢ a share, compared with the original 57¢ a share offer.
The next meeting is due for February 1 and early indications from shareholders seems to be that they will follow the recommendations of the board led by chairman George Jones and accept Hanlong's bid in the absence of a higher offer. Hanlong last year dropped an exclusivity clause, believing that absolutely no one else would bother crashing its party, but a counter-bid cannot be written off just yet. That is not least because there are still said to be parties in the data room. No movement is expected this week but if there is another party hanging around, it would have to move in the next fortnight.
Sundance secured its Congo licence last week, meaning it has now met all the conditions for the scheme of arrangement for Hanlong. It also means that whoever acquires the iron explorer can start construction.
SDL Price at posting:
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