Toronto-based private equity fund Kinterra Capital has approached New World Resources (ASX:NWC) with an upgraded bid to acquire 100% of the ASX-listed copper junior – and the explorer’s board thinks this is the one to take.
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The board has today recommended New World shareholders accept Kinterra’s unconditional off-market takeover bid, which would see all holders paid 6.6 cents a share.
Central Asia Metals (CAML) had also been involved in the takeover battle, originally opening proceedings with a 5.5cps offer that Kinterra then beat by 2c in June. (Kinterra grabbed 19.16% in NWC at the same time.)
CAML returned with another buyout bid on July 7, tabling a $230 million package it hoped would get it over the line – but Kinterra then upped the ante again.
“The New World board has withdrawn its previous recommendation and now unanimously recommends that, in the absence of a superior proposal, shareholders accept the Kinterra offer before 5pm on July 24,” the company wrote.
HotCopper understands this release comes after CAML pulled out of the race.
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Should the deal get past shareholders, Kinterra Capital will open the takeover by increasing its relevant interest to more than 30% at the 6.6cps price point.
Then, should Kinterra control more than 30% of the company by 5pm, July 24 – that voting deadline mentioned earlier – the Canadian private equity fund will then buy up the remaining equity for 6.7 cents a pop.
NWC opened Week 30 trade at that 6.7cps after a +1.5% rise last week.
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