(Updates with context on deal, background)
March 7 (Reuters) - South Africa's Sibanye-Stillwater said on Tuesday it now controlled nearly 71% stake in
New Century Resources , two weeks after launching an
unsolicited takeover bid as it lost confidence in the Australian
zinc miner's board.
The South African precious metals producer launched an
A$1.10 cash per share offer through its local unit on Feb. 21,
valuing the Australian miner at A$144.1 million ($97.18
million).
Sibanye-Stillwater, which owned a 19.9% stake in New Century
when the unsolicited offer was launched, has steadily racked up
its stake in the Australian miner to up to 70.55% as of March 7,
making it the controlling shareholder.
"Given that Sibanye Australia currently has voting power in
70.55% of the shares, Sibanye Australia believes the likelihood
of a competing proposal emerging for New Century is low," the
South African firm said.
"Sibanye-Stillwater encourages all remaining New Century
shareholders to now accept the offer."
Sibanye Australia has also further placed a buy order on the
local stock exchange and the Chicago Board Options Exchange to
purchase shares on market on or below the A$1.10 offer price.
"This will further enable remaining New Century shareholders
who are looking to sell their shares on market to dispose of
their holdings in an orderly manner and receive payment,"
Sibanye said.
The South African company, which was attracted to New
Century because of its tailing business to produce zinc, has
been concerned about change in its strategic direction under the
current management.
($1 = 1.4828 Australian dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Rashmi
Aich)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.