The directors of ASX- and TSX-listed Cardinal Resources have advised shareholders not to take any action on an increased offer from suitor Nordgold, after it upped its cash offer from 60c a share to 90c a share. Cardinal has previously backed a rival offer from Shandong Gold Mining, which is offering shareholders 70c in cash for each share not already held. The Shandong offer is subject to a 50.1% minimum acceptance condition, with the Foreign Investment Review Board (FIRB) having already granted approval.
Cardinal told shareholders on Wednesday that while the 90c a share cash offer by Nordgold was higher than the offer made by Shandong, Cardinal had certain obligations under the bid implementation agreement signed with Shandong, including matching rights in favour of Shandong.