explains a lot about what is going on., page-5

Sundance deal could face holiday delay
Nick Evans
303 words
29 September 2012
The West Australian
TWAU
Second
77
English
(c) 2012, West Australian Newspapers Limited
Public holidays in China may impact on the receipt of critical documents in Hanlong Mining’s revised 45¢ per share offer for Sundance Resources.

The Perth iron ore hopeful called a halt to trading in its shares yesterday, ahead of an October 1 deadline for Hanlong to provide a financier commitment letter from its backers, including the China Development Bank. According to the timetable for the scheme implementation agreement between the two companies, a scheme booklet is also due to be lodged with the Australian Securities Exchange by October 4.

China’s National Day public holiday begins on October 1, kicking off its “Golden Week” — a five-day holiday in which the country’s financial markets and most businesses are closed.

According to a trading halt request filed by Sundance yesterday, the company expects to be able to make an announcement to the market by the start of trading on Tuesday. It is unclear whether Hanlong has already secured the critical letter, or whether Sundance will be forced to wait the full week before an announcement can be made.

Some Chinese Government reports yesterday suggested an announcement date of October 1.

Despite locking in a 45¢ price for the deal, down from an initial offer of 57¢, Sundance shares have not approached the offer price since the revised $1.37 billion deal was struck in late August, indicating the market still has strong doubts about whether the takeover will succeed.

Though the new agreement removed exclusivity clauses, and the West Africa-focused company had hinted it was shopping its $4.7 billion Mbalam Iron Ore project to other suitors, the company was yet to announce it was in any firm discussions with possible rival suitors toHanlong.

Sundance shares last changed hands at 34¢.