Fight for Cordero Resources Heats Up

In what it hopes will be the knockout punch in its fight with Ember Resources Inc. (EBRRF.PK)  to acquire Cordero Resources Inc. (CDEYF.PK),  Enmax Corp. has increased its bid for Cordero to C$5.20 per share.  

Enmax's new offer includes a C$0.45 special dividend on top of the original C$4.75 per share all cash offer. The dividend is conditional on the successful completion of the transaction and payable by Cordero.

In a note to clients, Mr. Hulshof, an analyst at Blackmont said:

This offer is arguably superior to the Ember Resources cash and stock offer of C$5.35 per share (C$5.11 per share based on the Ember Friday close of C$1.96 per share) and  the cash component is capped at C$55-million or 29% of the total transaction.

To remain competitive, Ember will undoubtedly have to increase both its offer and likely the cash component as well.

Mr. Hulshof added that he continues to believe Ember Resources is a better fit for Cordero given operational synergies.