Kenmare Resources rejects initial takeover bid led by former managing director worth €565m

The former managing director of Kenmare Resources Michael Carvill and private equity firm Oryx Global Partners made an initial bid worth €565m for the titanium mining group. Picture: Jason Clarke

Mining firm Kenmare Resources has rejected an initial €565m takeover bid from a consortium led by its former managing director Michael Carvill. 

The company which operates the Moma Titanium Minerals Mine in Mozambique said it received a non-binding proposal from private equity group Oryx Global Partners Ltd and Mr Carvill regarding the offer, which proposed a price of £5.30 per 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. 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," a statement from Kenmare said on Thursday.

Shares of Kenmare Resources were up 45% in trading in London on Thursday morning.  

Mr Carvill became Kenmare managing director in 1986, and served for 38 years until leaving the role in August 2024. 

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.