New World Increases Scheme Offer to $0.055; Kinterra Proposes $0.057 Cash Bid
New World Resources has increased its scheme offer to 5.5 cents per share, while rival Kinterra proposes a higher 5.7 cents off-market takeover bid. The board is reviewing the competing offers amid uncertainty over the final outcome.
- New World Resources ups scheme cash consideration to $0.055 per share
- Kinterra submits non-binding indicative takeover proposal at $0.057 per share
- Board assessing Kinterra’s conditional offer alongside existing CAML scheme
- No shareholder action required pending company review
- Uncertainty remains over which offer may prevail
Improved Scheme Offer from CAML
New World Resources Limited (ASX – NWC) has announced a key update to its ongoing takeover process, executing a Second Deed of Variation to increase the cash consideration payable under the existing Scheme Implementation Deed with CAML to 5.5 cents per share. This adjustment reflects a modest but meaningful improvement from the original terms announced earlier in June, signaling CAML’s continued commitment to acquiring New World.
Kinterra’s Higher Indicative Proposal
Complicating the takeover landscape, New World revealed it has received an unsolicited, non-binding, and conditional indicative proposal from Kinterra. This proposal offers 5.7 cents per share, paid entirely in cash via an off-market takeover offer, slightly surpassing CAML’s improved scheme consideration. However, the proposal remains incomplete and subject to several undisclosed conditions, leaving its ultimate viability uncertain.
Board’s Deliberation and Shareholder Guidance
The New World board, alongside its advisers, is actively reviewing Kinterra’s indicative proposal to determine its merits relative to the existing CAML scheme. While the board has not yet made any recommendations, it has emphasized that shareholders are not required to take any immediate action. The company has committed to fulfilling its continuous disclosure obligations and will provide updates as the situation evolves.
Strategic Implications for New World Resources
This development introduces a competitive dynamic to New World’s acquisition process, potentially enhancing shareholder value if a bidding contest emerges. Both CAML and Kinterra appear motivated to secure control of New World’s portfolio, which includes copper and base metals projects in Arizona and New Mexico. The outcome will hinge on the board’s assessment of offer certainty, conditions, and overall value proposition.
Looking Ahead
As New World navigates these competing proposals, investors will be watching closely for any binding offers or revised terms. The company’s next announcements will be critical in clarifying the path forward and the potential impact on shareholder returns.
Bottom Line?
The tug-of-war for New World Resources is just beginning, with shareholders awaiting clarity on which bid will ultimately prevail.
Questions in the middle?
- What conditions underpin Kinterra’s indicative proposal, and how likely are they to be satisfied?
- Will CAML respond to Kinterra’s higher offer with a further improved bid?
- How will New World’s board weigh certainty versus price in recommending a takeover path?
