- South African mining giant Sibayne-Stillwater prepares to launch an off-market takeover offer for full control of ASX-listed New Century Resources (NCZ)
- The mining giant acquired a 19.9 per cent interest in NCZ back in 2021 to bolster its exposure to a circular economy
- Over the past six months, shares in NCZ have fallen almost 60 per cent following its new strategic direction
- As such, Sibanye plans to offer to acquire up to 100 per cent of the shares in New Century that it doesn’t already own at a best and final price of $1.10 per share
- Shares in NCZ are soaring, up 42.2 per cent and trading at $1.10 at 2:23 pm AEDT
South African mining giant Sibayne-Stillwater has announced its intention to launch an off-market takeover offer for full control of ASX-listed New Century Resources (NCZ).
Sibayne-Stillwater snapped up a 19.9 per cent interest in NCZ back in 2021 in a bid to increase its exposure to a circular economy by growing its tailings retreatment and recycling presence globally.
Today, the mining giant said its decision to table an off-market takeover offer came as a result of growing concerns related to New Century’s change in strategic direction, with its tailings asset management business no longer a focus.
Shares in New Century have plummeted almost 60 per cent over the past six months, suggesting perhaps the strategy has not been well received by shareholders and investors.
Further, Sibayne-Stillwater holds the belief that NCZ’s balance sheet is under strain and that a number of shareholders in the company are looking to sell their holdings.
As such, the mining giant has announced its intention to make an off-market takeover offer to acquire up to 100 per cent of the shares in New Century that it doesn’t already own at a best and final price of $1.10 per share.
This offers a 42.9 per cent premium on NCZ’s trading price at market close on February 20, 2023, and a 21.5 per cent premium to its one-month volume-weighted average price (VWAP).
Sibayne-Stillwater confirmed the offer will be made by its wholly-owned subsidiary, Sibayne Australia.
New Century acknowledged the Sibanye offer but urged shareholders to take no action until it has spoken to advisers about the bid.
Shares in NCZ were soaring, up 42.2 per cent and trading at $1.10 at 2:23 pm AEDT.