Kinterra Raises Offer to 6.7 Cents as CAML Withdraws Takeover
Kinterra Capital has withdrawn its review application to the Takeovers Panel after increasing its offer for New World Resources, prompting the board to recommend acceptance and Central Asia Metals to exit the race.
- Kinterra withdraws Takeovers Panel review application
- Kinterra raises takeover offer to 6.6–6.7 cents per share
- New World Resources board switches support to Kinterra
- Central Asia Metals withdraws its takeover offer
- CAML plans to sell its shares to Kinterra
Takeover Battle Shifts Momentum
The ongoing contest for control of New World Resources Limited has taken a decisive turn this week. Kinterra Capital GP Corp II, acting on behalf of its fund, has withdrawn its review application to the Takeovers Panel concerning Central Asia Metals PLC’s on-market share acquisitions. This move follows Kinterra’s strategic decision to increase its takeover offer, signaling renewed confidence in its bid.
Board Endorses Kinterra Offer
In a significant development, New World’s board has reversed its earlier stance by withdrawing its recommendation of Central Asia Metals’ proposal. Instead, the board now unanimously supports Kinterra’s improved offer of 6.6 cents per share, or 6.7 cents if Kinterra’s stake surpasses 30% by the deadline. This endorsement is a critical signal to shareholders, emphasizing the board’s belief that Kinterra’s bid better serves their interests in the absence of a superior proposal.
CAML Exits the Race
Following the board’s shift, Central Asia Metals announced the withdrawal of its takeover offer. CAML also revealed plans to dispose of its shares in New World by accepting Kinterra’s offer, effectively conceding the contest. This exit simplifies the takeover landscape, leaving Kinterra as the primary suitor and potentially smoothing the path to a successful acquisition.
Regulatory and Market Implications
The Acting President of the Takeovers Panel has approved Kinterra’s withdrawal of its application, noting no public interest concerns. The absence of a sitting Panel and the lack of published reasons suggest a relatively straightforward resolution. Market watchers will be keen to see how shareholders respond to the board’s recommendation and whether any new bids emerge in this evolving scenario.
Looking Ahead
With the takeover battle seemingly narrowing, attention now turns to shareholder decisions and the final outcome of Kinterra’s offer. The dynamics of this contest underscore the fluid nature of corporate control battles in the mining sector, where strategic bids and board endorsements can rapidly reshape prospects.
Bottom Line?
As Kinterra gains the upper hand, shareholders face a pivotal choice that could reshape New World Resources’ future.
Questions in the middle?
- Will any new competing bids emerge to challenge Kinterra’s offer?
- How will New World shareholders respond to the board’s recommendation?
- What are the strategic plans for New World under Kinterra’s potential control?
