Kenmare ends takeover talks with consortium, shares tumble
By Michele Maatouk
Date: Thursday 19 Jun 2025
(Sharecast News) - Kenmare Resources tumbled on Thursday after the producer of titanium minerals and zircon said it has terminated takeover talks with a consortium of Oryx Global Partners and founder Michael Carvill.
The company announced on 6 March that it had received a non-binding proposal from the consortium about a possible all-cash offer at 530p per share. This was rejected on the basis that it undervalued Kenmare's business and its prospects.
However, to facilitate an improvement of the financial terms, Kenmare offered to give the consortium access to limited due diligence information.
Kenmare said that since 6 March, it has continued talks with the consortium and provided additional due diligence information, "which also supported the consortium's ability to progress its discussions with potential financing partners".
During their most recent engagement, however, Kenmare said the consortium made clear that it would only be willing to proceed with an offer at pricing "substantially below" the initial proposal.
The revised pricing was subject to a request for an additional period of due diligence to conclude financing and other arrangements. However, Kenmare rejected it on the basis that it significantly undervalued the business and its prospects.
As a result, the board decided it was not in the best interests of shareholders to seek an extension to the offer deadline and has terminated all discussions with the consortium.
Chairman Andrew Webb said: "Kenmare supported the consortium in its due diligence process and gave the possible offer extensive consideration, despite its early stage and unsolicited nature. The board will continue to review all opportunities to create significant long-term value for all of our stakeholders, including our shareholders.
"We are highly confident in Kenmare's prospects as an independent company and its ability to deliver on its strategic and operational objectives. 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 H2 2025."
At 0910 BST, the shares were down 17.5% at 325p.
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