Hanlong saga to end

Termination of the takeover deal between Sundance Resources and Chinese group Hanlong is a step closer, after Hanlong conceded it could not meet Tuesday's deadline for delivery of credit papers needed to demonstrate financial backing for the deal.

Termination of the takeover deal between Sundance Resources and Chinese group Hanlong is a step closer, after Hanlong conceded it could not meet Tuesday's deadline for delivery of credit papers needed to demonstrate financial backing for the deal.

The failure to produce credit approved term sheets means the two parties will now go into a five-day consultation period, after which one or both can agree to officially terminate the deal.

The missed deadline adds to a long list of occasions that Hanlong has failed to produce evidence that it can fund its proposed $1.3 billion takeover of Sundance.

The saga has been dragging on for more than 18 months, and now appears to be in its death throes.

The takeover was supposed to give Hanlong control of Sundance's Mbalam iron ore deposit in Cameroon. But with the era of high iron ore prices gradually coming to an end, the investment credentials of the project are slipping.

Sundance shares are in a trading halt and are not expected to return to trading until April 8.

Discussions between Sundance and Hanlong come amid reports Hanlong chairman Liu Han has been detained by Chinese police.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles