Sibanye-Stillwater said it is now the controlling shareholder of Australian zinc miner New Century Resources with a nearly 71% stake, two weeks after launching an unsolicited takeover bid, reported Reuters.
The South African precious metals producer launched an A$1.10 cash per share offer through subsidiary Sibanye Australia on Feb. 21, valuing the New Century at A$144.1 million.
The miner, which was attracted to New Century because of its tailing business to produce zinc, has been concerned about change in the strategic direction under the current management.
Sibanye-Stillwater, which owned a 19.9% stake in New Century when the unsolicited offer was made, has steadily racked up its stake in the miner to up to 70.55% as of March 7.
"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," said Sibanye-Stillwater, noting that all remaining shareholders should accept its offer.
Sibanye Australia has also placed a buy order on the local stock exchange and the Chicago Board Options Exchange to purchase shares 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.
<p">New Century’s flagship Century project in Queensland is the largest tailings remining and processing operation in Australia.