Sundance accepts reduced offer from China's Hanlong

Australian-based international resources company Sundance Resources Limited on Monday said it had accepted a revised offer from China's Hanlong Mining Investment Limited for the full acquisition of Sundance for 45 AU cents a share.

The revised offer from Hanlong is worth 1.37 billion AU dollars (1.42 billion U.S. dollars), a 21 percent shaving on its original offer.

Hanlong lowered its offer from 57 AU cents a share to 45 AU cents after Chinese regulators ordered the move following a fall in iron ore prices.

Sundance said Hanlong's proposal and the Board of Sundance Resources' decision followed the announcement earlier in August that China's National Development and Reform Commission had granted provisional approval for Hanlong to acquire Sundance.

Sundance chairman George Jones said the Board of Sundance Resources had decided to accept the reduced offer following extensive talks with Hanlong and after considering a range of factors, including changes in financial markets since the initial offer was made in October 2011.

"The board has reviewed in detail all the courses open to it," Jones said in a statement.

"The board has concluded that, from those available choices, a revised scheme price which maintains the revised SIA (Scheme Implementation Agreement) is currently in the best interests of shareholders."

Sundance said it had also stipulated, and Hanlong had agreed, to several amendments in the revised SIA to help provide certainty for shareholders that Hanlong would fulfill its obligations by the end of the 2012 calendar year.