Sibanye has cited changes in strategic direction and a decline in shareholder value as the reason for its takeover bid.
The recent string of takeover bids is marching on, with Sibanye Stillwater making an off-market play for New Century Resources.
Sibanye, which holds a 19.9 per cent interest in New Century, has now made a takeover offer to acquire up to 100 per cent of the fully paid ordinary shares at a price of $1.10 cash per share.
“We will continue to advocate for change in the current strategic direction of New Century,” the company said in a statement announcing its bid.
“Sibanye has also recently become aware that a number of shareholders in New Century may be looking to dispose of their holdings on market.
“Sibanye has been concerned about the change in strategic direction of New Century under current management, with the building of a tailings asset management service business no longer a focus.”
The re-appointment of Nick Cernotta and Robert McDonald to the New Century board was also not supported by Sibanye.
Sibanye has called the New Century balance sheet “under strain”, due to potential funding requirements for growth projects and which could result in a raise in additional equity and a material dilution for existing shareholders.
New Century, for its part, has recommended that its shareholders take no action toward the bid.
Sibanye has been the majority shareholder of New Century since 2021.
“Our investment complements our successful partnership with DRDGOLD and we look forward to supporting New Century to build a leading global tailings re-treatment business,” Sibanye chief executive officer Neal Froneman said at the time of the 2021 investment.