21st Jul 2025 10:41
(Alliance News) - Central Asia Metals PLC on Monday said it is ending negotiations to acquire ASX-listed mining firm New World Resources Ltd, after New World switched its recommendation to a higher bid from Kinterra Capital.
Central Asia Metals, or CAM, is a London-based mining company focused on Kazakhstan and Macedonia. CAM acknowledged a notice on Thursday from New World, which said Canadian private equity firm Kinterra had made "a superior proposal".
This follows a series of incremental offer raises by both CAM and Kinterra, stretching back to May, when CAM made its first approach to New World. CAM's first offer valued the company at AUD0.050 per share - 30% lower than its most recent offer of AUD0.065 per share, or AUD240 million in total. Kinterra's latest bid is for AUD0.066 per share.
New World shares closed down 1.5% at 0.066 on Monday in Sydney, having more than doubled over the past 12 months, for a market capitalisation of AUD225.9 million, or GBP109.4 million.
CAM shares were 6.6% higher at 150.79 pence on Monday morning in London, giving it a GBP274.5 million market cap.
CAM told New World it will not submit a counter proposal, and on Monday, New World swapped its voting recommendation to the Kinterra deal. As a result, CAM and New World are terminating the deed of implementation they had agreed earlier in July.
The deed came after Kinterra unsuccessfully tried to prevent CAM from buying more shares in New World. In a June filing submitted to the Australian Takeovers Panel, Kinterra accused CAM of insider trading and market manipulation. Each time CAM has raised its offer price, it has done so directly after buying shares in New World at the same price as the latest offer.
CAM and New World's previous agreement included a revised transaction structure. Originally, the deal would have been implemented as an off-market takeover in parallel with an acquisition scheme, but CAM scrapped plans for an AUD10 million placement, and offered instead to loan New World AUD6.5 as part of the deal.
CAM's offer was open to acceptances on Thursday when it received notice of Kinterra's raised bid. As late as Friday, New World's board, which owns a combined 3.3% of the company, recommended takeover by 12.1% owner CAM.
By Holly Munks, Alliance News reporter
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