Africa-focused iron ore developer Sundance Resources Limited (ASX:SDL) has announced that it is backing its largest shareholder’s sweetened takeover bid.
China’s Hanlong Mining has improved its offer by 14 per cent, from $0.50 to $0.57 per share, valuing Sundance at $1.65 billion.
Sundance directors have unanimously recommended that shareholders vote in favour of the scheme, that is also still conditional on regulatory approvals.
The offer price represents a 65.3 per cent premium to the company’s volume-weighted average price in the month leading up to Hanlong’s initial proposal in July.
In the 2011 financial year Sundance Resources reported a net loss of $21.7 million.
