Sibanye-Stillwater said on Tuesday that 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 February 21, valuing the Australian miner at A$144.1 million (R1.8 billion).
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 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 changes in its strategic direction under the current management.
REUTERS