comments byhanlong & 2nd offr delay good 4 sdl

Hey Guys

Looks like a Take Over is the most likely scenario, which is good and bad depending on your investment time horizon you had for SDL.

Just a thought about the comments made by Hanlong recently, mentioned plenty of times on HC below, together with the second revised offer from Hanlong heading into the 3rd week is a very good thing for Sundance Shareholders!

This extra time allows any new information to be recorded and displayed in the SDL Data Centre, which includes increases in JORC Compliant Iron Ore Resource. It also allows any contracts with a potential partner eg Chinese Steel Mills to be signed.

But most importantly the comments by Hanlong's Mr Liu Han are the most exciting.

The comments below where he publicly states that if Hanlong takes over Sundance Resource's Mbalam and Nebeba tenements and project, it will break the oligopoly that is RIO BHP and Vale in global iron ore supply. That this take over will mean CHinese Steel mills will save tens of billions of dollars every year, once these mines become operational from 2014, as well as significant upside in iron ore production making it the 4th Biggest Iron Ore Mine in the world.

For him to make comments like this, he is spruiking this take over as a game changer to the benefit of China and its steel mills, says to me that the revised offer will exceed the 60/65c level that has been mentioned in articles and posts.

It says to me that the revised offer will be high enough to make it palatable to the Sundance Board and Shareholders, which means they will need the support of the Chinese Govt and Banks to pay the extra $$$. Hence Mr Han's "game changing public comments" are needed to give him public/govt backing so that a higher than expected bid isn't frowned upon by the CHinese public/govt/banks.

An increase from the current 50c per share bid or $1.44Billion to 60c or $1.73Billion only represents an additional $300m. This represents the cost to date that they have spent to buy 18% of SDL.

This is just IMHO! But to me this sounds like we will receive a very good Take Over offer for SDL from Hanlong.

Again we just need to let Mr Jones and Mr Casello to do their work.

Cheers Nectar




Shock and ore: Hanlong aiming to crack top four
John Garnaut Beijing
August 3, 2011
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THE Treasurer, Wayne Swan, may soon have another foreign investment headache on his hands, as a Chinese entrepreneur says he has Beijing's backing to step around Australian investment rules and become the world's fourth force in iron ore.

Liu Han, chairman of the sprawling Hanlong conglomerate, has told local media that the Chinese government and its banks were backing his ambitious overseas investment plans, including a takeover bid for the Australian-listed iron ore hopeful Sundance Resources.

He said his Hanlong Group would become one of the world's top four iron ore producers within 10 years. This would give China ''a say'' in iron ore price negotiations and stem as much as $80 billion in national losses now flowing to the three iron ore giants, Vale, Rio Tinto and BHP Billiton.
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But despite a generous credit line from the Export-Import Bank of China, and his claim to be pursuing national strategic rather than private commercial objectives, Mr Liu says his status as a private entrepreneur will enable him to step around Australian foreign investment rules.

"Every company in Hanlong Group is private," reported China Business News, paraphrasing comments from Mr Liu. "Australia is a rule of law country, the Australian government doesn't have a law that can resist these takeovers."

The comments may complicate the foreign investment approval process for possible future investments by the Hanlong Group and other private Chinese companies in Australia, although the Sundance bid is unlikely to raise serious concerns because the primary assets are in Africa.

The $1.3 billion Sundance bid was lodged by Australian-registered Hanlong Resources, whose parent company is the privately held Sichuan Hanlong Group.

Chinese state-owned enterprises have so far accounted for an overwhelming majority of China's overseas resource investments. The investments have caused bilateral tensions since Chinalco's complex $US19.5 billion bid for a stake in Rio Tinto in 2009.

After the bid failed, a Chinese internal post-mortem acknowledged international suspicion of state-owned entities and recommended greater assistance and funding for Chinese private entities to achieve Chinese strategic goals.

The Australian Foreign Investment Review Board's stated preference for private investors can be difficult to apply to China, where the state-private divide is not always clear-cut.

All large successful private companies require a degree of symbiosis with relevant tiers of the Chinese government - or they at least must pay lip service to government objectives - to protect themselves and pursue their own interests.

Mr Liu told China Business News that the powerful National Development and Reform Commission had confirmed its support for Hanlong's overseas development.

Read more: http://www.smh.com.au/business/shock-and-ore-hanlong-aiming-to-crack-top-four-20110802-1i9xl.html#ixzz1U1o9SrsE