The situation is that feedback has been sought from hedge funds/instos re a 40c deal and this has clearly been rejected. Hanlong have regulatory clearance to do the deal and have been working on this with a global IB. Similarly, Sundance is represented by UBS. These IBs know all the investors and are skilled at bringing buyers and sellers together at a mutually beneficial price. They will be working hard to achieve this as they are remunerated on deal success.
While I am obviously concerned with the situation, I cant forsee either party walking away from a deal - there is too much at stake for both parties. I believe a compromise on price will be reached. Given market conditions it is understandable that this will be below 50c. The question then is what will be the timetable as a new SIA will need to be drafted (and this is potentially going on now).
I may be proven wrong however, taking a rational view of the situation dynamics I believe the right outcome will be achieved.
Good luck to all.
SDL Price at posting:
33.5¢ Sentiment: Hold Disclosure: Held