KENMARE Resources has been granted an extension for ongoing acquisition talks with potential buyers, pushing the decision deadline to June 20.
The mining company first announced on March 6 that it had received a non-binding cash offer from a partnership between Oryx Global Partners Limited and Michael Carvill, who are interested in purchasing the company.
The potential buyers were originally required to declare their intentions by today, May 15, following an earlier extension from April 17. However, Kenmare’s board requested more time to allow the interested buyers to complete their due diligence process.
The Irish Takeover Panel has now approved this extension. By June 20, the potential buyers must either make a formal offer to purchase Kenmare or officially withdraw their interest.
Kenmare said there is no guarantee that a final offer will be made or what terms might be included.
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.
Kenmare rejected the bid from Michael Carvill and Oryx worth €565m. The offer proposed a price of £5.30 per share.
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.
