PERTH (miningweekly.com) – Takeover target New Century Resources has urged shareholders to accept the A$1.10-a-share takeover offer from global metals miner Sibanye-Stillwater.
In a statement to shareholders on Wednesday, New Century told shareholders that the suitor had already obtained a relevant interest of 73.41%, and therefore control of the company, and had confirmed that the offer would be its best and final in the absence of a competing proposal.
New Century also reiterated concerns over the company’s ability to continue as a going concern, pointing out that the Sibanye-Stillwater offer represented a 42.9% premium to New Century’s last trading price and a 21.5% premium to its one-month volume weighted average share price.
The New Century board has unanimously recommended that shareholders accept the offer, warning that any remaining shareholders would likely face significantly reduced share trading liquidity following the expiry of the takeover offer and would have difficulty in realising a price equivalent to the offer price, or current market prices.
Sibanye-Stillwater in February launched its takeover offer after expressing concern about the change in the strategic directions of New Century under its current management, with the building of a tailings asset management services business no longer a focus.
The JSE- and NYSE-listed suitor said at the time that the drop in New Century’s share price, from A$1.05 at the end of January to around 77c a share before the offer was launched, was indicative that shareholders and investors did not back the current strategy.