Kenmare Resources to raise €162m as suitor Iluka pulls out

Kenmare Resources is aiming to raise $175m (€162m) in order to make a significant dent in a debt mountain currently measured at nearly $330m.
Kenmare Resources to raise €162m as suitor Iluka pulls out

The Dublin-based mining firm, which owns the Moma Titanium mine in Mozambique, yesterday announced an agreement in principle for a $100m investment from Oman’s sovereign wealth fund, the State General Reserve Fund.

While Kenmare has no urgent repayment deadline looming with its lenders — which are mainly development finance institutions — it is under pressure to present a deleveraging plan by the end of January.

The Omani investment is reliant on the Dublin firm raising additional funds of at least $75m, via an equity raise.

To this end, it is understood that there has already been positive engagement held with larger institutional shareholders.

Kenmare’s news coincided with a separate statement from Australian mining firm, Iluka Resources saying it had pulled its long-standing takeover interest in the Irish company.

Perth-based Iluka had, for some time, been in the frame for a heavily conditioned takeover of Kenmare, speculated to be worth around €265m, but finally pulled out with the Irish firm’s largest shareholder not supporting the transaction at the level Iluka was offering.

It is also understood that Iluka had made progress on a number of other pre-conditions pertaining to the deal.

In response, Kenmare said t it is now focused on “securing the independent future of the company in the interests of all of its stakeholders”.

“As long as Kenmare can get the capital-raising away and lenders continue to be supportive, then this is probably ultimately good for Kenmare, as the revised Iluka offer was fairly low-ball, even at the bottom of the cycle,” researchers at Numis Securities in London said.

More in this section

Price info
Price info

Subscribe to unlock unlimited digital access.
Cancel anytime.

Terms and conditions apply

Budget 2022 Logo

What impact will this  year's budget have on you and your business.

The Business Hub

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day. PS ... We would love to hear your feedback on the section right HERE.

News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Our Covid-free newsletter brings together some of the best bits from, as chosen by our editor, direct to your inbox every Monday.

Sign up