News, Takeover bids

Sibanye commences compulsory acquisition of New Century

From today, the offer acceptance facility regarding major platinum producer Sibanye Stillwater acquiring the remaining shares of base metal producer New Century Resources will close.

In February, Sibanye made an off-market takeover bid for New Century, which detailed Sibanye acquiring up to 100 per cent of the fully paid ordinary shares at a price of $1.10 cash per share.

Sibanye cited changes in strategic direction and decline in shareholder value as the reasons behind its takeover bid.

At the time of its February offer, Sibanye held a 19.9 per cent interest in New Century and had been its majority shareholder since 2021.

In March, New Century’s board urged its shareholders to accept Sibanye’s offer as it was unlikely that a competing offer would be brought forward, since Sibanye now owned a 73.41 per cent interest.

New Century have now announced the offer made by Sibanye is currently scheduled to close May 15, and Sibanye intend to complete the compulsory acquisition procedure in respect of the New Century’s remaining shares according to the timetable set out in the Corporations Act 2001.

“Accordingly, all remaining shares in New Century that have not been validly accepted into the offer by 7.00pm (Sydney time) on Tuesday, 2 May 2023, will be compulsorily acquired by Sibanye Australia,” New Century’s announcement said.

“Compulsory acquisition will be on the same terms as those offered by Sibanye Australia under the offer, which means that remaining shareholders will receive $1.10 cash per New Century share.

“New Century will shortly send a letter to remaining shareholders advising how to claim that consideration.”

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