(Updates Sundance share price in sixth paragraph.)
Oct. 11 (Bloomberg) -- Sichuan Hanlong Group, offering A$1.65 billion ($1.65 billion) to buy Sundance Resources Ltd., said it’s working with Australian regulators after the Sydney Morning Herald reported approval of the bid is being stalled.
“We will continue to work constructively with all relevant government and regulatory bodies and stand ready to provide further information as required,” Hanlong, based in Chengdu, China, said today an e-mailed statement.
Hanlong has been told that the Foreign Investment Review Board won’t decide on the bid until it has more details of an insider trading investigation by the Australian Securities and Investments Commission, the newspaper reported. The commission, or ASIC, is inquiring into suspected insider trading involving two takeover targets of Hanlong.
“Hanlong has informed Sundance that it is continuing to work productively with FIRB on its application and expects to receive FIRB’s decision well within the indicative timetable for the proposed scheme of arrangement,” Sundance said in a statement. The deal is expected to be completed in May next year, with Sundance shareholders due to vote on the proposal in April, Sundance said Oct. 4.
“It is important to note Hanlong Mining is not under investigation by ASIC and is conducting business as usual,” Hanlong said.
Sundance fell 1.2 percent to 43 cents at the close of Sydney trading, the lowest price since Sept. 30.
Buying Sundance will give Hanlong control of the $4.7 billion Mbalam rail, port and iron ore mine project, straddling the border of Cameroon and Republic of Congo. Hanlong, which has investments in highway and power projects, said last year it will invest as much as A$5 billion in resource assets to feed China’s demand for commodities.
--Editors: Keith Gosman, Andrew Hobbs
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