China's Hanlong Mining Investment has received a fresh round of financing from a Chinese bank to fund its $1.65-billion agreed takeover of Australia's Sundance Resources.
Sundance, a Perth-based West Africa-focused iron ore miner, today said that Hanlong has secured a further financing commitment from China Everbright Bank Co for $438 million.
The new round of funding, along with previous financing of $1.022 billion from the China Development Bank, Hanlong now has funds exceeding the take-over offer, Sundance said in a statement.
The Everbright commitment replaces the earlier one provided by Bank of Deyang Co Ltd.
In July 2011, Hanlong, with a 18.6-per cent stake in Sundance, had offered to buy the remaining shares it does not already own, for A$0.50 a share or$1.65 billion, and in August this year, revised its offer downwards by 21 per cent to $1.4-billion following the global slide of iron ore price.
The board of Sundance accepted the revised bid of A$0.45 after the Chinese regulator approved the takeover on condition that the acquisition price was amended due to a change in market conditions. (See: Australia's Sundance Resources expects Hanlong's offer to be lowered)