CAML to accept Kinterra’s offer for New World Resources
London-listed Central Asia Metals (CAML) has withdrawn its takeover offer for New World Resources, opting instead to accept a competing bid from Kinterra Capital, which won the backing of New World’s board earlier this week.
CAML said on Tuesday it had terminated its previously agreed scheme implementation deed with New World and received regulatory consent to withdraw unaccepted offers under its A$0.065-a-share bid. The UK-based miner will now tender its holding into Kinterra’s A$0.067-a-share cash offer.
The move clears the path for Kinterra, a Canada-based private equity firm, to complete its off-market takeover, following the New World board’s unanimous recommendation that shareholders accept the higher offer.
CAML will also receive a break fee as compensation for the termination of the earlier agreement. The company confirmed it had formally requested the payment from New World following the withdrawal.
The contest for New World, which holds the high-grade Antler copper project in Arizona, underscores growing interest in advanced-stage copper assets amid a looming global supply crunch.
Shares in New World were last trading at A$0.066, just shy of Kinterra’s top-end offer.
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