Sibanye-Stillwater (JSE:SSW, NYSE:SBSW) has made an off-market takeover offer for New Century Resources Limited (ASX:NCZ) at $1.10 per share.
Sibanye-Stillwater is the largest shareholder in New Century, with an interest of 19.9 per cent after participating in an equity capital raising that was completed in December 2021.
The takeover offer is to acquire up to 100 per cent of New Century fully paid ordinary shares that it does not already own or control.
Sibanye-Stillwater acquired its interest in New Century with the aim of increasing its exposure to the circular economy by growing its tailings treatment and recycling presence globally.
The company has been concerned about the change in the strategic direction of New Century under current management, with the building of a tailings asset management services business no longer a focus.
According to Sibanye-Stillwater, the substantial decline in shareholder value (down 59 per cent over the last six months) implies the current strategy has not been well received by shareholders and investors.
New Century’s board is considering the offer and has recommended shareholders currently take no action.
The board has also noted that Sibanye-Stillwater intends to place a buy order on the ASX to acquire up to a further 10.92 per cent of the total New Century shares on issue on market at or below a price of $1.10 a share.
New Century has engaged Allens as its legal adviser and CIBC Capital Markets as its financial adviser in relation to the offer.
