Hanlong secures financing for Sundance takeover

Sichuan Hanlong Group has secured financing agreements for its US$1.18 billion buy-out offer for Australian iron ore exploring company Sundance Resources (SDL.ASX) and is expected to complete the acquisition by January 8, Bloomberg reported, citing a statement made by Sundance Monday. Hanlong has obtained a US$1.02 billion debt facility from China Development Bank and entered into loan agreements with Bank of Deyang to finance the deal. The announcement drove Sundance’s share price up 2.9% to AU$0.35 on October 22, the highest level since August 28 but still lower than Hanlong’s reduced offer for the company of AU$0.45 per share. Hanlong, which currently owns around 17% stake in Sundance, obtained approval from Australia in June and from China in August for the long-delayed acquisition of the remaining stake.