Acquisition Battle Intensifies as CAML Raises New World Bid Amid Rival Offer
Central Asia Metals has increased its takeover offer for New World Resources to A$0.062 per share after acquiring a significant stake, valuing the company at around A$230 million.
- CAML acquires 12.1% of New World Resources shares
- Offer price raised from A$0.055 to A$0.062 per share
- New valuation implies a 121% premium over pre-offer share price
- Competing bid from Kinterra remains active
- Shareholders advised no immediate action required
CAML Increases Stake and Offer Price
Central Asia Metals Plc (CAML) has taken a decisive step in its pursuit of New World Resources Limited (NWC) by purchasing an additional 7.1% of the company’s shares after market close on 26 June 2025. This move brings CAML’s total ownership to approximately 12.1%, signaling strong confidence in the acquisition strategy and setting the stage for a potentially swift deal closure.
Following this share purchase, CAML announced an increase in its cash offer for New World shares from A$0.055 to A$0.062 per share. This improved consideration values New World at an estimated A$230 million, representing a substantial premium over recent trading prices. Notably, the offer is 121.4% higher than New World’s closing price before the initial scheme announcement and significantly exceeds the price of a recent capital raise.
Context of the Acquisition and Market Dynamics
The acquisition is structured through an Australian Scheme of Arrangement and a parallel off-market takeover bid, both designed to run concurrently but independently. This dual approach provides flexibility for CAML to secure control while navigating regulatory and shareholder approvals. The improved offer also outbids a competing takeover proposal from Kinterra, which had offered A$0.057 per share, underscoring CAML’s commitment to securing New World.
New World Resources, with its portfolio of copper and base metal projects in the United States, including the Antler Copper Project in Arizona and the Tererro Copper-Gold-Zinc Project in New Mexico, represents a strategic asset for CAML’s expansion ambitions. The premium offered reflects both the value of these assets and the competitive tension in the bidding process.
Implications for Shareholders and Next Steps
Shareholders of New World Resources are currently advised that neither CAML nor Kinterra have declared their offers as “best and final,” meaning the bidding process could still evolve. Importantly, shareholders are not required to take any immediate action, allowing time for further developments and potential counteroffers.
The formalization of the increased offer price will be documented through a Deed of Variation to the Scheme Implementation Deed, expected to be executed shortly. Market participants will be watching closely for any further moves from the bidders and the response from New World’s board and shareholders.
Bottom Line?
With CAML’s enhanced offer and growing stake, the battle for New World Resources is heating up, but the final outcome remains uncertain.
Questions in the middle?
- Will Kinterra respond with a higher bid to counter CAML’s improved offer?
- How will New World’s shareholders react to the competing offers and premium valuations?
- What regulatory hurdles could impact the timing and success of the acquisition?
