Kenmare Resources shares jumped on Thursday after the titanium miner rejected a takeover approach following a period of poor share price performance.
- 530 pence per ordinary share offer from consortium
- Offer rejected unanimously
- Kenmare Resources paid over $48m in dividends in 2024
Kenmare Resources confirmed it received a non-binding cash offer from a consortium of Oryx Global Partners Limited and Michael Carvill, valuing the company at 530 pence per ordinary share. The company’s board unanimously rejected the offer.
The directors determined that the offer “undervalued Kenmare’s business and its prospects” despite the offer being nearly twice yesterday’s share price.
Kenmare shares were 59% higher at 437p at the time of writing.
Despite the rejection, Kenmare has offered to provide the consortium with access to limited due diligence information, potentially opening the door for an improved proposal.
Kenmare recently announced better-than-expected results for 2024, with production exceeding guidance.
“Kenmare delivered a strong finish to 2024, exceeding the midpoint of our production guidance for ilmenite and the upper end of the guidance ranges for all other products,” said Tom Hickey, Managing Director, Kenmare Resources.
The business is highly cash-generative and pays a substantial dividend.
“In 2024 we paid $48 million in dividends and invested over $140 million in capital programmes, primarily for the upgrade and transition of our largest mining plant to Nataka. Our balance sheet remains strong and we expect our full year 2024 dividend to be towards the upper end of our payout policy of 20-40% of profit after tax,” Hickey explained.