Engineers & Planners bids to buy gold company for US$220m

• Posted on November 25, 2020November 25, 2020
• by Nana Kwesi Coomson
• Comment

Engineers & Planners has announced a conditional off-market cash offer to acquire all of the ordinary shares in Cardinal Resources Limited, a gold?focused exploration and development company that holds interests in tenements within Ghana, for US$220 million.

This offer will be subject to obtaining all usual and necessary approvals, including regulatory approvals in Australia (FIRB) and from relevant Ghanaian authorities.

The offer represents a shareholders’ cash return equivalent to 0.65 Australian dollars ($ 0.65) per share at current market rates.

The consideration of 1.05 Australian dollars (A$1.05) per share (the “Offer Price”) for the shares of Cardinal on ASX, is 5% higher than both the recently revised Nord Gold and Shandong Gold Mining Offers of A$1.
 
The offer values Cardinal at A$564,764,139.50 based on 100% of the ordinary equity on issue.

A letter signed by Emmanuel Erskine, Business Development Director of E&P, said the company has factored into its offer the inclusion of 10% ownership on a free carry basis for the state of Ghana.

E&P observed that although this is not mentioned in the Ghanaian shareholder agreements, this is required by law and would apply to any purchase or change of control for the Ghana asset.

The company expressed support for the policy and the value it would bring to local and national communities.

The offer represents a compelling opportunity for Cardinal shareholders to realise value and stimulate ownership of Ghanaian natural resources by a 100% Ghanaian-owned entity.

Engineers & Planners is a 100% Ghanaian-owned mining and construction company, headquartered in Accra, Ghana, with a 22-year proven track record of mining contracting and operational excellence in West Africa.

E&P employs 3,000 mainly Ghanaian team members.

 The company is expected to increase its staff strength to 4,500 when they successfully acquire the company. Currently, Engineers & Planners is contracted to two of the major gold mines in production in Ghana.

Engineers & Planners’ formal offer period will commence on November 18, 2020 and be open until the close of trading (4pm Sydney time) on December 31, 2020, unless extended or withdrawn in accordance with the Corporations Act 2001 (Cth).