Sundance Resources (ASX:SDL) has received a 50 cent a share takeover proposal from its largest shareholder, Hanlong Mining.
The proposal from the Chinese company, which already own 18.6 per cent of Sundance stock, values the African iron ore explorer at around $1.4 billion.
Sundance doesn’t consider the terms provide adequate value, and is recommending its shareholders take no action until it meets with Hanlong over the terms of the bid.
At the end of May, Sundance denied media reports that it was in discussions regarding a full takeover.
For the second half of 2010, Sundance Resources (ASX:SDL) posted a loss of $9.2 million.
