New World Resources has urged its shareholders to back Kinterra’s takeover bid after the latter increased its stake to more than 50 per cent and surpassed Central Asia Metals’ offer.
New World Resources has urged its shareholders to back Kinterra’s takeover bid after the latter increased its stake to more than 50 per cent and surpassed Central Asia Metals’ offer.
In an update to the market today, New World announced Kinterra has increased its shareholding in the company to 59.02 per cent.
Toronto-based investment group Kinterra yesterday increased its offer price to 6.7 cents for every New World share.
Earlier this week, Kinterra offered 6.6 cents for every New World share or 6.7 cents each if its shareholding in the company surpassed 30 per cent.
Kinterra grew its stake in New World to 39.46 per cent just yesterday.
The updated bid has caused the New World board to withdraw its previous recommendation of the London-based CAML’s proposal.
In its ASX statement today, New World said Kinterra’s updated 59.02 per cent stake in the company constituted a change of control.
“The new board continues to unanimously recommend that shareholders accept the Kinterra Offer without delay, ahead of its scheduled closing at 7.00pm (AEST) on 10 August 2025, in the absence of a superior proposal,” the statement read.
“The board does not expect such a proposal to emerge.”
Kinterra and CAML have been locked in a takeover bid over New World Resources in the past months.
By mid-June, Kinterra has bought a 12 per cent stake in New World over a fortnight, paying between 4.75 cents and 5.1 cents per share.
The transactions came after CAML lobbed a bid of 5 cents per New World share, which would value the takeover deal at $185 million.
From early June, the two entities have marginally increased their respective bids to surpass the other.
New World continued to recommend its shareholders accept CAML’s proposed bid, which went to 6.5 cents a share by July 17.
The company switched its support to Kinterra on Monday, when the latter updated its bid and CAML informed New World that it would not match the revised offer.
New World’s core asset is the Antler copper project in Arizona.
