Game on! TORONTO, June 19, 2020 /CNW/ - A take-over bid for all of the outstanding Shares of Cardinal Resources Limited ("Cardinal") was filed by Shandong Gold Mining Co, Ltd, with the Canadian securities regulatory authorities on June 18, 2020.
MMCAP International Inc. SPC ("MMCAP") is an investment fund advised by MM Asset Management Inc. ("MM Asset").
On June 19, 2020, MM Asset, on behalf of MMCAP, acquired control and direction over an aggregate of 24,860,401 common shares ("Common Shares") of Cardinal through the facilities of the Toronto Stock Exchange and Australian Stock Exchange after a take-over bid had been commenced for the common shares of Cardinal.
As of June 19, 2020, MM Asset, on behalf of MMCAP, exercised control and direction over 55,711,157 Common Shares, representing approximately 11.14% of the 500,024,522 issued and outstanding Common Shares as reported in Cardinal's Management's Discussion and Analysis dated May 14, 2020.
The securities were acquired in the ordinary course of business, for investment purposes only and not for the purpose of exercising control or direction over Cardinal. Depending on market conditions and other factors, MM Asset, on behalf of MMCAP, may in the future increase or decrease its ownership, control or direction over securities of Cardinal through open market transactions, private agreements or otherwise.
SOURCE MM Asset Management Inc.
From Hot Copper which owns Stockhouse:
Post:
The bottom line is the most interesting, seems more than a coincidence that they've suddenly bought 25million shares, Wonder if it's for them or are they going into stealth mode for someone else Post 2:
I think the good news for shareholders is that there are a number of substantial holders in the mix so it's not a lay down misere that Shandong will be able to successfully achieve a take over at .60c.
Nord at circa 19% (surely they will take some form of action)
MM Asset Management with circa 10% (they can sit tight, buy more and/or work with other major holders to establish a blocking stake that gets sold to another party at a more attractive price than .60c)
Scotia Bank circa 6%
Retail investors at circa 40% (many have held these shares for a long time, have built up significant holdings and wont part with them until the time and price is right)
As I said earlier, if the history of mining takeovers is any guide an alternate offer is highly likely to be put forward, most likely by Nord. Alternatively a left field contender could pop their head up. At the very least substantial holders and retail holders can stand firm which will force Shandong to put forward a revised higher offer in order to get shareholders to release their shares.
Management only have circa 6% of shares so it's other parties that will have a greater say in how this all unfolds.
Last edited by
mmac22:
Yesterday, 22:45