Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Cardinal Resource (CDV AU): Nordgold Reloads

Cardinal Resource (CDV AU): Shandong Reloads, But Not A Knockout Offer

Cardinal Resources (CDV AU): Nordgold's Knockout Offer

Quiddity Advisors

Event-Driven

Back on the 16 March, <a href="https://www.smartkarma.com/entities/cardinal-resources-ltd-9e1d58d4-8d9b-48dd-a059-3f04f896e3ee" target="_blank" data-smartkarma-citation="entities:28182:1" rel="noopener">Cardinal Resources Ltd (CDV CN)</a> <a href="https://www.cardinalresources.com.au/wp-content/uploads/2020/03/44g3dcdj1ws0zv.pdf" target="_blank" rel="noopener">announced</a> the receipt of a non-binding Offer from Nord Gold SE (Nordgold) at A$0.45775/share. Nordgold held 19.9% of shares out having acquired 16.4% from Goldfields Limited.
In a <a href="https://www.cardinalresources.com.au/wp-content/uploads/2020/03/44ght29h1n29by.pdf" target="_blank" rel="noopener">30 March update</a>, CDV said it had entered into a confidentiality agreement with Nordgold and had also provided due diligence. There has been no further update.
On the 18 June, CDV <a href="https://www.cardinalresources.com.au/wp-content/uploads/2020/06/2075832.pdf" target="_blank" rel="noopener">recommended</a> a takeover Offer from <a href="https://www.smartkarma.com/entities/shandong-gold-mining-co-ltd-61153493-5437-47ee-a8d3-aec41fb7f1da" target="_blank" data-smartkarma-citation="entities:27455:1" rel="noopener">Shandong Gold Mining Co., Ltd. (1787 HK)</a> at A$0.60/share, a 75.5% premium to CDV's 20-day unaffected VWAP, and a 31.1% premium to Nordgold's proposal.  Here is SGM's <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0619/2020061900061.pdf" target="_blank" rel="noopener">announcement</a>. 
This off-market takeover offer is subject to a 50.1% minimum acceptance condition. SGM has also provided an interim funding package of A$11.96mn via a placement of shares.
CDV’s directors, collectively holding of 6.37% of CDV’s ordinary shares, intend to accept the Offer. 
This deal could get up, even if Nordgold does not tender, but that will be challenging. If on board, this deal is all but done.
But I suspect shares may have more to run from these competing suitors.

Back on the 16 March, Cardinal Resources Ltd (CDV CN) announced the receipt of a non-binding Offer from Nord Gold SE (Nordgold) at A$0.45775/share. Nordgold held 19.9% of shares out having acquired 16.4% from Goldfields Limited.
In a 30 March update, CDV said it had entered into a confidentiality agreement with Nordgold and had also provided due diligence. There has been no further update.
On the 18 June, CDV recommended a takeover Offer from Shandong Gold Mining Co., Ltd. (1787 HK) at A$0.60/share, a 75.5% premium to CDV's 20-day unaffected VWAP, and a 31.1% premium to Nordgold's proposal.  Here is SGM's announcement. 
This off-market takeover offer is subject to a 50.1% minimum acceptance condition. SGM has also provided an interim funding package of A$11.96mn via a placement of shares.
CDV’s directors, collectively holding of 6.37% of CDV’s ordinary shares, intend to accept the Offer. 
This deal could get up, even if Nordgold does not tender, but that will be challenging. If on board, this deal is all but done.
But I suspect shares may have more to run from these competing suitors.

Cardinal Resources

Shandong's Competing Offer For Cardinal