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(Sharecast News) - Central Asia Metals said on Monday that it has opted not to match a revised takeover offer for New World Resources, effectively stepping aside after NWR's board determined a competing bid from Kinterra Capital to be superior.
The AIM-traded firm said it received a matching right notice on 17 July after Kinterra increased its offer to 6.6 Australian cents per NWR share in its fourth supplementary bidder's statement.
Under the terms of the bid implementation deed (BID) between CAML and NWR, CAML had the right to submit a counterproposal.
However, following a review, CAML's board said it had chosen not to make a revised offer.
It had notified NWR of the decision, and NWR had now withdrawn its previous recommendation of CAML's bid.
The NWR board said it was unanimously recommending that shareholders accept the Kinterra offer, in the absence of a superior proposal, before 1700 AEST on 24 July.
As a result, CAML and NWR intended to terminate the BID, triggering a break fee payable to CAML.
The company said it would provide further updates in due course.
At 1144 BST, shares in Central Asia Meals were up 6.79% at 151p.
Reporting by Josh White for Sharecast.com.
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