The All Ordinaries Index (ASX: XAO) is down 0.25% in early afternoon trade. But that's not holding back this ASX All Ordinaries share. It's rocketed a whopping 43% since the opening bell this morning.
Any guesses who?
If you said New Century Resources Ltd (ASX: NCZ), give yourself a gold star.
The mining company is shooting the lights out today following news of an off-market takeover offer.
What's the takeover offer for the ASX All Ordinaries share?
Large-cap miner Sibanye Stillwater Ltd (NYSE: SBSW) has announced an off-market takeover offer to acquire up to 100% of New Century Resources, valuing the miner at $1.10 per share.
That, not coincidentally, is right about where the ASX All Ordinaries share is trading at the time of writing.
With an existing interest of 19.9%, Sibanye Stillwater is the largest shareholder in New Century Resources.
The company said it participated in New Century Resources' December 2021 equity capital raising because that aligned with its strategy to increase its tailings retreatment and recycling presence globally.
At the time of the acquisition, Sibanye Stillwater's CEO Neal Froneman said, "We look forward to supporting New Century to build a leading global tailings retreatment business, uniquely positioned to play a key role in green metal supply chains."
Now, more than two years on, Sibanye Stillwater said it's "concerned about the change in the strategic direction of New Century under current management", adding that management has lost its focus on building a tailings asset management services business.
Citing the 59% six-month drop in the ASX All Ordinaries share (excluding today's big increase) Sibanye Stillwater said the current strategy "has not been well received by shareholders and investors".
It also did not support the proposed re-election of Nick Cernotta or Robert McDonald to the board at the Annual General Meeting on 9 November.
Sibanye Stillwater also aired its concerns about New Century's balance sheet, saying the ASX All Ordinaries share might need to raise more funds, "which could result in a material dilution for existing New Century shareholders".
The company set its offer price of $1.10 per share, in the absence of a competing proposal.
New Century Resources share price snapshot
As you can see in the chart below, the ASX All Ordinaries share remains well down over the past 12 months but, with today's big boost factored in, is up 29% so far in 2023.
