Kinterra has increased its takeover offer for New World Resources to A$0.062 per share, positioning its bid as superior and less conditional than rival Central Metals Asia’s scheme proposal. With a significant stake and strategic moves underway, the battle for NWR ownership intensifies.
- Kinterra increases takeover offer for NWR shares from A$0.057 to A$0.062
- Revised offer represents premiums up to 210% over recent NWR trading prices
- Kinterra’s bid is unconditional and subject to fewer regulatory approvals than CAML’s scheme
- Kinterra holds 19.30% of NWR and plans to vote against CAML’s proposal
- Kinterra offers interim funding and has engaged Moelis Australia for on-market share purchases
Kinterra’s Bold Move to Strengthen Takeover Bid
Kinterra Infrastructure Critical Materials & Infrastructure Opportunities Fund II has officially raised its takeover offer for New World Resources Limited (NWR) shares from A$0.057 to A$0.062 per share. This increase, announced in a supplementary bidder’s statement dated 30 June 2025, reflects a strategic push to outbid Central Metals Asia Plc (CAML), which has proposed a competing scheme at the same price but with more conditions.
The revised offer price represents a substantial premium over NWR’s recent trading history, up to 210% above the last placement price in March 2025 and well over 120% above the closing price on 20 May 2025. This premium signals Kinterra’s confidence in the value of NWR and its commitment to securing control.
Unconditional Offer Versus Conditional Scheme
Kinterra’s bid stands out for its simplicity and certainty. Unlike CAML’s scheme proposal, which is subject to multiple regulatory approvals including from the Committee on Foreign Investment in the United States (CFIUS), Macedonian authorities, and Australian courts, Kinterra’s offer is unconditional except for standard prescribed occurrences. This reduces execution risk and potential delays, making Kinterra’s offer more attractive to shareholders seeking a swift resolution.
Furthermore, Kinterra’s offer is scheduled to open for acceptance by early July 2025, whereas CAML’s scheme vote is not expected until mid-September, with implementation potentially delayed until October. This timing advantage could be decisive in persuading shareholders.
Strategic Shareholding and Voting Power
Kinterra currently holds a significant 19.30% stake in NWR, making it the largest shareholder. This position grants Kinterra considerable influence over the outcome of the takeover battle. The bidder has confirmed its intention to vote against CAML’s scheme at any shareholder meeting, leveraging its stake to block the rival proposal if necessary.
In addition to its shareholding, Kinterra holds 62.5 million options exercisable at A$0.04 per share, potentially increasing its influence further. The firm’s active engagement and voting intentions underscore its determination to secure control of NWR.
Interim Funding and Market Purchases
Beyond the takeover offer, Kinterra has expressed willingness to provide interim funding to NWR, which recently announced a conditional A$10 million placement with CAML. Kinterra’s offer to support NWR financially could sway shareholder sentiment by addressing immediate liquidity needs.
To support its bid, Kinterra has appointed Moelis Australia as broker to acquire NWR shares on-market at or below the revised offer price of A$0.062. These on-market purchases demonstrate Kinterra’s commitment and may help build its stake further, increasing pressure on rival bidders.
Implications for NWR Shareholders and the Takeover Race
For NWR shareholders, the competing offers present a choice between a higher, unconditional cash offer from Kinterra and a conditional scheme with CAML that carries regulatory and timing uncertainties. Kinterra’s strategic moves, including its voting intentions and interim funding offer, position it as a formidable contender.
The unfolding contest highlights the complexities of takeover battles in the critical materials sector, where strategic stakes and regulatory hurdles often shape outcomes. Investors will be watching closely as the acceptance period opens and shareholder meetings approach.
Bottom Line?
Kinterra’s enhanced offer and strategic positioning set the stage for a high-stakes showdown over NWR’s future ownership.
Questions in the middle?
- Will NWR shareholders accept Kinterra’s unconditional offer over CAML’s conditional scheme?
- How will regulatory approvals impact the timing and success of CAML’s proposal?
- Could Kinterra’s interim funding offer sway undecided shareholders or management?