London-listed Central Asia Metals (CAML) has raised its offer for Australian copper developer New World Resources, escalating a takeover battle with rival bidder Kinterra Capital.
CAML late on Thursday acquired a further 253-million New World shares, or 7.1% of the company’s issued capital, through after-market purchases at A$0.062 apiece. The UK-listed company now holds about 12.1% of New World.
Following the share purchases, CAML proposed to increase the cash consideration under its scheme of arrangement and parallel off-market takeover bid from A$0.055 to A$0.062 a share. The revised bid values New World’s fully diluted equity at about A$230-million.
The improved offer represents a 121.4% premium to New World’s last trading price of A$0.028 on May 20 – the day before the scheme was first announced – and a 142.7% premium to the 30-day volume-weighted average share price up to that date. It also tops the A$0.057-a-share offer tabled by Kinterra Capital this week.
A deed of variation to the existing scheme implementation deed is expected to be executed to formalise the higher offer.
New World’s portfolio includes US-based copper and polymetallic projects, including the Antler and Javelin projects in Arizona, and the Tererro copper/gold/zinc project in New Mexico.
Both CAML and Kinterra have yet to declare their respective offers “best and final”. New World shareholders have been advised that no immediate action is required in relation to either proposal