New World Resources, a Czech miner listed on the Prague and London exchanges, has abandoned its bid for Polish coal-producer Bogdanka.

It launched its unsolicited bid on October 5, with an offer of zł.100.75 a share, valuing the company at approximately zł.3.3 billion. Pension fund Aviva OFE, the mine's main shareholder, rejected this price, stating that it did not represent the company's true value.

On November 29, NWR found it had failed to secure the 75-percent minimum stake that it had called for and dropped its bid.

“Given the strong industrial and strategic logic of our offer, this transaction was always going to come down to price,” NWR Chairman Mike Salamon said on Tuesday in a statement. “The outcome further demonstrates NWR’s record of strict financial discipline.”

After NWR pulled out, Bogdanka's shares continued trading above NWR's offer at zł.101.80. On October 4, the day before NWR made its offer, the shares had stood at zł.89.20 a share.

In the meantime, the Czech firm intends to continue investing in its two Polish mines despite the lack of synergies that the acquisition of Bogdanka would have brought. NWR expects to spend EUR350-400 million to open its Debiensko over the next five years, creating “up to 2,500 new jobs” in Poland.

The company currently employs about 2,600 Polish nationals in its Czech operations.