A consortium consisting of Oryx Global Partners Ltd and former managing director & company founder Michael Carvill on Thursday confirmed it does not intend to make a takeover offer for Kenmare Resources PLC.
The Mozambique-focused producer of titanium minerals and zircon earlier on Thursday had said it terminated talks with the consortium.
The consortium said: ‘Following a comprehensive due diligence process and after accounting for its findings, the consortium was unable to reach alignment with Kenmare on its updated valuation and as a result the consortium has ceased engagement.’
Kenmare earlier Thursday had said: ‘During Kenmare’s most recent engagement with the consortium, it was made clear by the consortium that it would only be willing to proceed with an offer at pricing substantially below the initial proposal.’
In early March, Kenmare said it had received a potential takeover offer from the consortium, valuing Kenmare at 530 pence per share.
Kenmare shares were down 16% to 330.50 pence each on Thursday morning in London. Its shares are 24% below the 436p price at which it traded at on March 18, a few days after it confirmed the takeover approach. However, they remain up 2.8% over the past year.
Kenmare Chair Andrew Webb said: ‘We are highly confident in Kenmare’s prospects as an independent company and its ability to deliver on its strategic and operational objectives. Moma is one of the world’s largest titanium minerals deposits, with a multi-decade mine life, a consistent low-cost profile, and substantial inherent value. Kenmare remains on track to achieve its 2025 production guidance and has a strong order book for H2 2025.
‘The wet concentrator plant A upgrade project continues to progress to plan, with commissioning on track to begin in Q3 2025, ahead of the plant‘s transition to the large Nataka ore zone. Mining in Nataka will secure long-term production from Moma and will support the company’s ability to generate strong cash flow throughout the commodity price cycle.’
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