KENMARE Resources said it had been providing due diligence information to a consortium ahead of a possible second takeover proposal.
Earlier this month, Kenmare said it had rejected a €565m takeover bid from the consortium consisting of private equity group Oryx Global Partners and Michael Carvill, who is Kenmare’s former MD.
The offer proposed a price of £5.30 per share. Kenmare is currently trading in London at £4.29/share, 34.98% higher in the last 12 months.
“The board of Kenmare, together with its advisers, considered the terms of the proposal and unanimously rejected it on the basis that it undervalued Kenmare’s business and its prospects,” said at the time of the initial bid.
Commenting during its 2024 financial results on Wednesday, Kenmare said it had been providing limited due diligence information to Carvill and Oryx “with the aim of improving the financial terms of the consortium’s proposal”. The consortium must announce at least a firm intention to bid by close of business on April 17, under a ‘put-up-or-shut-up’ deadline imposed by the Irish Takeover Panel, according to a report in the Irish Times.
Carvill became Kenmare MD in 1986, and served for 38 years until leaving the role in August 2024. Carvill was replaced by Tom Hickey who was the company’s financial director from 2022.
Kenmare reported 29% decline in earnings for the 2024 financial year amid a slide in prices for titanium minerals and zircon. It declared a reduction in the dividend to 32 US cents per share from 56c in 2023.
Global demand for titanium feedstocks like ilmenite, which used in the manufacture of everything from paints and plastics to ceramics and textiles, reached a record high during the year, supported by strong demand from emerging markets such as South America and Asia, excluding China, said the Irish Times in its report. However, prices have fallen over the past two years, as a result of a spike in production, it added.
Kenmare is one of the world’s largest producers of titanium minerals. It mines Moma in Mozambique – one of the largest titanium minerals deposits in the world, with production expected to continue for at least 45 years at the current production rate.
