Kenmare rejects takeover proposal from former MD and Abu Dhabi firm following lower bid

Kenmare said  it unanimously rejected the revised pricing “on the basis that it significantly undervalued Kenmare’s business and its prospects”.

The consortium, comprising the former MD and Abu Dhabi private equity firm Oryx Global Partners Ltd said it was only willing to proceed with a bid below its initial £473m (€553m) proposal.

The board of mining giant Kenmare Resources has unanimously rejected a bid from a consortium led by its former managing director Michael Carvill for the company's share capital.

The consortium, comprising the former MD and Abu Dhabi private equity firm Oryx Global Partners Ltd said it was only willing to proceed with a bid below its initial £473m (€553m) proposal.

The company which operates the Moma Titanium Minerals Mine in Mozambique said it unanimously rejected the revised pricing “on the basis that it significantly undervalued Kenmare’s business and its prospects”.

In March, Kenmare confirmed that it received an approach from Mr Carvill, who founded the mining company in 1986, and Oryx Global Partners Limited. It said at the time that it had rejected the original proposal, pitched at £5.30 per share, as undervaluing the company. 

However, Kenmare offered the consortium access to its books to carry out due diligence, intending to improve the offer.

“Kenmare supported the consortium in its due diligence process and gave the possible offer extensive consideration, despite its early stage and unsolicited nature,” said managing director Tom Hickey. “The board will continue to review all opportunities to create significant long-term value for all of our stakeholders, including our shareholders”

“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 the second half of 2025,” he added.