Kenmare Resources rebuffs takeover attempt by former executive

Kenmare Resources Plc shares surged as much as 52% after the titanium minerals producer rebuffed a takeover offer made by a former executive at a hefty premium.

The Dublin-based miner’s board unanimously rejected a non-binding proposal from a consortium comprised of Oryx Global Partners and former managing director Michael Carvill at 530 pence per share, saying it “undervalued Kenmare’s business and its prospects,” according to a Thursday statement.

Carvill stepped down from Kenmare’s board in August 2024 and currently serves as a consultant.

The proposed deal represents a premium of 92.7% to Kenmare’s closing price of 275 pence on March 5, according to Bloomberg’s calculations. The offer would value the company at £472.9 million ($609 million).

Kenmare’s shares traded in London were up 44% as of 12:14 p.m. local time, after rising as much as 52% to 417.5 pence earlier in the biggest intraday move since December 2015. The company’s shares traded at a peak of 12,510 pence in 2012, but plunged over the following few years during a downturn in its markets.

The company, which operates the Moma titanium minerals mine in Mozambique, has agreed to grant the consortium access to limited due diligence information in order to “facilitate” an improvement in the financial terms of the proposal.

The consortium has until 5 p.m. on April 17 to either announce a firm offer or walk out from the deal.

(By Gabriela Mello)