Kinterra Increases NWR Bid to A$0.063, May Boost to A$0.064 on 30% Ownership

Kinterra's Strategic Price Hike

Kinterra Infrastructure Critical Opportunities Materials & Fund II, LP has issued a second supplementary bidder's statement, announcing an increase in its takeover offer for New World Resources Limited (NWR) shares from A$0.062 to A$0.063 per share. This incremental rise reflects Kinterra's intent to strengthen its position in the ongoing contest for control of NWR, a key player in the mining sector.

Moreover, Kinterra has signaled a further potential increase to A$0.064 per share, contingent on its relevant interest in NWR exceeding 30% by 7pm AEST on 11 July 2025. Achieving this threshold would not only trigger the higher offer price but also render the offer unconditional, removing key uncertainties for shareholders.

Unconditional Offer and Prompt Payment

The unconditional nature of the offer upon reaching the 30% stake is a significant advantage. Kinterra has committed to paying shareholders promptly, within ten business days after the offer becomes unconditional or after acceptance, contrasting with the competing CAML bid, which requires shareholders to wait until the offer period ends before payment.

This faster payment timeline could be a decisive factor for shareholders weighing their options, especially in a competitive takeover environment where timing and certainty are paramount.

Funding and Offer Superiority

Kinterra emphasizes the robustness of its funding arrangements, highlighting undrawn but committed capital from its partners that exceed the total transaction value. This contrasts with CAML, which has yet to enter binding funding agreements for its offer consideration. Kinterra’s secured financial backing lends credibility and reduces execution risk.

Additionally, Kinterra asserts its offer is superior to CAML’s not only in price but also in terms of unconditionality and certainty of funding. This assertion is critical as shareholders evaluate competing bids amid an evolving takeover battle.

Option Cancellation Agreements

In a strategic move to streamline ownership, Kinterra plans to enter into option cancellation agreements with holders of NWR options on terms equivalent to those offered by CAML. This approach aims to neutralize potential dilution and aligns with Kinterra’s broader takeover strategy, ensuring a cleaner capital structure post-acquisition.

On-Market Purchases and Market Impact

To further consolidate its stake, Kinterra has appointed Moelis Australia as its broker to acquire NWR shares on-market at or below the revised offer price. These on-market purchases during the bid period could signal confidence and exert upward pressure on the share price, influencing shareholder decisions ahead of the critical 11 July deadline.

As the contest for NWR intensifies, shareholders and market observers will be closely watching acceptance levels and any further adjustments to the bids. The interplay between Kinterra’s secured funding, unconditional offer terms, and CAML’s competing proposal sets the stage for a pivotal moment in this takeover saga.