Tango Mining's takever offer for Herald Resources has been extended after the bidder disclosed that it was still awaiting approval from the Foreign Investment Review Board.
An extract from Tango's letter to Herald shareholders is pasted below:
Dear Herald Shareholder
Takeover bid for Herald Resources Limited by Tango Mining Pte. Ltd.
We are writing to provide you with an update in relation to the recommended cash Offer of $2.50 for each Herald Resources Limited (Herald) share you own made by Tango Mining Pte. Ltd. (Tango).
Update on FIRB application
Tango advised in its Bidder's Statement dated 7 March 2008 that one of the conditions to the Offer for your shares was the approval or non-objection of the Treasurer (who receives advice from the Foreign Investment Review Board (FIRB)) under Part II of the Foreign Acquisitions and Takeovers Act 1975 (Cth) because Tango is a foreign person.
Tango lodged its FIRB application on 4 March 2008. Subsequent to this original application, in order to avoid FIRB formally extending its time for consideration of the application by a further 90 days (as FIRB is able to do), FIRB suggested to Tango that it would potentially expedite the process if Tango were to withdraw and immediately resubmit its application. This has the effect of starting afresh the time period for FIRB's consideration of the application, but avoids a 90 day extension. On the understanding that this would facilitate FIRB's consideration of the application, Tango resubmitted its application on 3 April 2008. As at the date of this announcement, Tango has not yet received FIRB approval.
Extension of Tango Offer
Tango advises that it has extended its Offer of $2.50 cash for each share in Herald Resources Limited you own.
We enclose with this letter a notice of variation which extends the offer period. The offer period will now end at 5.00pm (Perth time) on Thursday, 5 June 2008 (unless extended).
