Kenmare shares soar after firm rejects takeover bid

KENMARE Resources said on Thursday it had rejected an initial €565m takeover bid from a consortium led by its former MD Michael Carvill.The titanium miner confirmed receipt of a non-binding proposal from private equity group Oryx Global Partners and Carvill regarding the offer. The offer proposed a price of £5.30 per share. Kenmare is currently trading up 43% at £3.94/share.“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 Kenmare in a statement.“However, in order to facilitate the consortium improving the financial terms of the proposal, the company has offered to provide the consortium with access to limited due diligence information,” it added.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 is one of the world’s largest producers of titanium minerals. The Moma mine in Mozambique is one of the largest titanium minerals deposits in the world, with production expected to continue for 100 years at the current production rate.The company has returned approximately $280m (€259m) to shareholders through dividends and share buy-backs since 2019.This is not the first time Kenmare has been in the M&A crosshairs. While MD Carvill rejected a shareholder suggestion the firm’s board consider their strategic options, saying the business was not for sale. Then trading at £3.21/share, Carvill said the company was mispriced by the market.The post Kenmare shares soar after firm rejects takeover bid appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com