explains a lot about what is going on., page-9

Finance
Sundance on hold waiting for Hanlong
LEO SHANAHAN, MINING
284 words
1 October 2012
The Australian
AUSTLN
1 - All-round Country
21
English
© 2012 News Limited. All rights reserved.
SUNDANCE Resources will announce that its Chinese bidder, Hanlong Mining, is yet to finalise financing for its takeover after Sundance went into a trading halt on Friday.

However, the impending announcement by Sundance does not call into question Hanlong's commitment to the $1.37 billion takeover, with the Australian miner confident of receiving a draft financing letter from Hanlong in the coming weeks.

The decision to go into a trading halt was brought about by speculation that financing for the deal had been finalised, but The Australian understands no financing letter from Hanlong is in Sundance's possession. The market had been informed the letter would be with Sundance by October 1.

The finalisation of the takeover bid, which is being funded through China's state-owned China Development Bank, has been complicated by the Chinese autumn holidays this month, meaning the draft letter is unlikely to be finalised for several more weeks. A financing letter is necessary to demonstrate to the Australian courts the deal is viable.

China's National Development and Reform Commission also has to finally approve the deal, which will then be taken to Sundance shareholders for final approval, with the board hoping the deal will be completed by the end of this year.

Sundance agreed to a 45c-a-share offer by Hanlong Group in August. The offer is the third and lowest from Hanlong, after two higher bids were watered down by the Chinese miner. Hanlong has also been at the centre of an insider-trading scandal, with the company's former managing director and vice-president personally profiting from insider trades during the initial Sundance bid.