Sundance settlement ‘good news’ for Burford Capital, says Jefferies

Jefferies says “some good news” hit today for Burford Capital. Sundance Resources has announced a conditional settlement with the Republic of Congo, which would bring to an end a dispute before the International Court of Arbitration and, if successful, is expected to be final by the end of Q3, the analyst tells investors in a research note. While the terms are confidential, the firm believes the original claim to be for over $8.5B. Burford has been funding the arbitration process and this would likely lead to a realized gain on its investment, notes Jefferies. It keeps a Buy rating on the shares with a $22.50 price target.