Why New World’s Board Now Urges Shareholders to Accept Kinterra’s $0.067 Offer
New World Resources’ board unanimously backs Kinterra Capital’s revised $0.067 per share offer, following Central Asia Metals’ decision not to match. Shareholders face a July 24 deadline to accept the bid and secure increased value.
- Board withdraws recommendation for Central Asia Metals’ proposal
- Kinterra’s offer rises to A$0.067 per share if stake exceeds 30%
- Shareholders urged to accept before 24 July 2025 deadline
- Board members plan to accept offer on their shares
- Termination of Bid Implementation Deed triggers break fee payment
Board Shifts Support to Kinterra’s Offer
New World Resources Limited (ASX, NWC) has taken a decisive step in its takeover saga, with the board unanimously recommending shareholders accept the revised cash offer from Kinterra Capital GP Corp. II. The offer stands at A$0.067 per share, conditional on Kinterra increasing its relevant interest in New World above 30% by 5, 00pm (AEST) on 24 July 2025.
This development follows Central Asia Metals PLC’s (CAML) decision not to match Kinterra’s improved bid, prompting New World’s board to withdraw its previous recommendation of the CAML proposal. The board’s pivot signals a clear preference for Kinterra’s offer as the superior option for shareholders.
Implications for Shareholders and the Market
Shareholders now face a firm deadline to accept the Kinterra Offer to benefit from the increased price. The board has emphasized that accepting promptly will ensure payment within five business days, removing any incentive to delay. Notably, the board members themselves, who collectively control about 3.3% of New World’s shares, intend to accept the offer, reinforcing their confidence in the bid’s value.
The termination of the Bid Implementation Deed with CAML, as a consequence of this decision, will trigger a break fee payable to CAML. This financial repercussion underscores the seriousness of the board’s commitment to the Kinterra offer and the finality of the takeover process.
Next Steps and Outlook
New World plans to issue a Target’s Statement later this week, detailing the board’s rationale for recommending acceptance of the Kinterra Offer. The statement is expected to reiterate the view that no superior proposal is likely to emerge, aiming to galvanize shareholder support ahead of the acceptance deadline.
With Kinterra’s offer now the clear front-runner, the market will be watching closely to see how many shareholders accept and whether any late bids surface. The outcome will shape New World’s future ownership and potentially influence the strategic direction of its copper and base metals projects in the US.
Bottom Line?
As the July 24 deadline looms, New World shareholders must decide whether to embrace Kinterra’s offer or hold out for an unlikely rival bid.
Questions in the middle?
- Will any superior takeover proposals emerge before the deadline?
- How will the break fee payment to CAML impact New World’s finances?
- What strategic changes might Kinterra implement post-acquisition?
