Sundance boosts board in bid to find fresh suitor
Sundance Resources will bolster its boardroom expertise with the appointment of a new director, as it tries to bounce back from the disappointment of the failed Hanlong takeover.
Investors have lashed out over recent days after the 21-month takeover negotiation with Hanlong was officially terminated on Tuesday. The 48 per cent share price slide on Tuesday continued on Wednesday, with the stock falling another 9 per cent to 10¢.
Despite anger at the way the negotiation was handled, Sundance chairman George Jones said the company had a "top-notch" board that had performed as well as possible during the affair.
"I don't think serious board changes are needed," he said. But with Sundance back on the market and searching for a new suitor, Mr Jones said he would try to bring more skills into the company in a bid to get a deal over the line.
"We will add some additional firepower to the board to get this transaction done," he said.
Mr Jones was unable to say who would join the board, but indicated he felt compelled to continue as chairman until a deal was completed, given the circumstances in which his current stint began.
Mr Jones completed three years as chairman in August 2009, but was drafted back in mid-2010 after the entire board of Sundance was killed in a plane crash. He has chaired the company since.
"I'm not doing this for fun, I'm doing this for a sense of loyalty," he said on Wednesday.
Mr Jones has resigned from his other chairmanship at fellow iron ore miner Gindalbie Metals and will soon become chairman of the Western Australian Cricket Association.
While Hanlong's $1.37 billion takeover bid has been terminated, Sundance is not rid of the Chinese group, given it ranks as its biggest shareholder with a 14 per cent stake.
Sundance will be hoping it does not encounter the sort of turbulence being seen at Moly Mines - the other ASX-listed company that lists Hanlong as its biggest shareholder.
The board at Moly on Wednesday lost three independent directors after speculation Hanlong would shake up the board in a bid to recoup money paid to the junior miner.
Among the changes was the removal of Liu Han - the Hanlong executive recently detained in Beijing.