Kenmare Resources Share Discussion Threads

[jdk14] 04/7/2014 19:12

yep 1 (£)!!!

[bh61] 04/7/2014 17:22

Starting to fall away already, back to single figures anyone?

[nonic] 01/7/2014 16:04

libertine:

Thanks for that

[libertine] 01/7/2014 11:00

They have been approached regarding a takeover so disclosure rules now apply.



DISCLOSURE UNDER RULE 38.5(a) OF THE IRISH TAKEOVER PANEL ACT, 1997, TAKEOVER RULES, 2013



DEALINGS BY CONNECTED EXEMPT PRINCIPAL TRADERS WITH RECOGNISED INTERMEDIARY STATUS AND DEALING IN A CLIENT-SERVING CAPACITY

[nonic] 01/7/2014 10:56

What is it with all the RNSs regarding trading positions
CFDs etc?

Is it an Irish requirement?

[amj321pixiebristol] 29/6/2014 19:59

Yes possibly there will be a take-out bid from Iluka or a white knight will emerge. Either way it will be a sub-30p bid and an abject failure for Carvill et al.

[kevspark] 29/6/2014 18:09

hxxp://www.independent.ie/business/irish/kenmare-rebuffs-585m-opportunistic-iluka-approach-30391526.html


Nick Webb
Published 29/06/2014|02:30

Share

ISEQ
Kenmare Resources has given a defence mandate to investment bank Rothschild as it prepares to fight off a low ball approach from €2.5bn Australian mining firm Iluka.

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RBC, Davy Stockbrokers and McCann Fitzgerald are also working for Michael Carvill's resources firm. Goldman Sachs is advising Iluka.

Kenmare Resources has spent close to $1bn (€1.36bn) and the best part of a decade developing the world's largest dredge ilmentite and zircon mine in Moma in northern Mozambique.

Kenmare – headquartered in a small office above the sportswear shop Great Outdoors in Dublin – is Ireland's biggest stock market-quoted resources company.

It is understood that Carvill and his team have received broad support from its larger shareholders as it rejected the opportunistic bid from Iluka.

The all-share offer would have seen Kenmare shareholders receiving 0.036 new Iluka shares for each Kenmare share they own.

It valued the company at close to €585m.

Kenmare Resources raised close to $100m (€136bn) from investors last year at a price of around 30p per share, which would leave its backers nursing big losses if they were to accept the all-share offer from the Australians.

Shares in Kenmare have slid 70pc over the last year due to over-supply of ilmenite in the markets. Kenmare's largest shareholder M&G has written to the Irish Takeover Panel indicating its rejection of the current Iluka offer.

The M&G Recovery Fund is the largest shareholder in Kenmare, while M&G's Global Natural Resources fund is a large shareholder in ILuka. However, traditionally, M&G funds have competed against each other, according to sources. Blackrock, Capital research and the Norwegian Sovereign Wealth Fund Norges Bank are all big shareholders in the company.

Last week UBS said that it believed that the Iluka bid for Kenmare undervalued the resources company, suggesting that it is worth at least double the amount offered. The approach was described as "slightly opportunistic".

Analysts believe that it is likely that Iluka may return with a higher bid if it wants to buy Kenmare. The rebuttal of its initial approach may see Iluka go hostile and approach Kenmare's shareholders directly rather than seeking approval for a bid from Kenmare's board.


Good time to buy in me thinks.....DYOR

[djderry] 26/6/2014 15:58

I consider any offer at the above-mantioned level to be derisory.Cut directors' fees (Just for optics) and concentrate on a long term low-cost operation.Then,as mineral prices improve,begin to pay shareholders a dividend.Then we can hope to get some return over 10,20 or 30 years.Otherwise I'll accept 50p cash,no shares in Iluka,thanks anyway.

[kirk2] 26/6/2014 14:25

double top buy signal confirmed

[kirk2] 26/6/2014 13:55

somethings about to give they are hovering up stock over bid 20p close prediction

[donaferentes] 26/6/2014 13:04

Thanks for all the posts. Unusually I've been hard at work since 8am today and only just clocked in.

As already said, an offer not like to set the world alight, but I feel PIs will be well served by The Pru's robust response. It's just nice to know KMR has a pulse still!

Let's pray for this to awaken Rio Tinto's interest from their neighbouring interests (I believe they have, but have not confirmed this).

Watch this space!

[bullionbanker] 26/6/2014 11:06

0.036 Iluka shares = circa 17p. Not exactly an offer we can't refuse! At least it puts a stake in the ground, hope we rise to at least that as a base point, then maybe better offers will come out of the woodwork.

[a0148009] 26/6/2014 10:57

Bones 30 thanks had not seen that was posting elsewhere at the time.
The offer is low ball and should flush out more interest possibly from other operators in Mozambique and other producers. M&G (owned by the Pru) have had KMR in their recovery fund for several years from 10p years ago and held it all the way up and now all the way down! Clearly they are long term holders and will be demanding a KO price from any buyers.

AO

[nonic] 26/6/2014 10:36

Kenmare Resources PLC Statement re Possible Offer
Print
Alert
TIDMKMR

RNS Number : 6181K

Kenmare Resources PLC

26 June 2014

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO FOR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.5 OF THE IRISH TAKEOVER PANEL ACT, TAKEOVER RULES 2013 ("IRISH TAKEOVER RULES") AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE, NOR AS TO THE TERMS ON WHICH ANY OFFER WILL BE MADE.

Kenmare Resources plc ("Kenmare" or "the Company")

26 June 2014

Statement re. Possible Offer

The board of Kenmare notes the recent media comment and today's statement from Iluka Resources Limited ("Iluka"), and confirms that it has received an approach from Iluka regarding a possible offer by it for the Company's entire issued and to be issued share capital. The proposal received was based on a share for share exchange, with no cash component, with Kenmare shareholders receiving 0.036 new Iluka shares for each Kenmare share they own. The board of Kenmare has rejected Iluka's proposal, which it believes does not recognise the value inherent in Moma as a long-life, low-cost asset.

M&G Investment Management, which manages funds owning in aggregate 19.05 per cent of Kenmare, has confirmed that it supports the board's decision.

The approach from Iluka was preliminary in nature and was subject to various pre-conditions, including due diligence, and there can be no certainty that an offer will ultimately be forthcoming or on the terms on which any offer might be made.

Kenmare shareholders will be kept informed of relevant developments and in the meantime are advised to take no action.

This announcement has been made in accordance with the Company's obligations under the Irish Takeover Rules and has not been consented to by Iluka.

edit: didnt mean to repeat sorry

[bones30] 26/6/2014 10:28

They've rejected it with the support of M&G



....Works out if my maths is correct at 17p/sh

"The proposal received was based on a share for share exchange, with no cash component, with Kenmare shareholders receiving 0.036 new Iluka shares for each Kenmare share they own."

[a0148009] 26/6/2014 10:19

Rough calculation 20p excluding debt is circa 28p but 20p including debt circa 12p.Debt is £200m plus some capitalised interest since 31.12.2013.

Edit : I am surprised by so little comment on this board have PI's thrown in the towel or sunning themselves in far away places!

[ray164] 26/6/2014 10:16

Interesting that there's no response from the company yet.

[gscrawler] 26/6/2014 09:58

If the rumoured take over offer is around 20p I am surprised the stock has not moved closer to that level

[a0148009] 26/6/2014 09:18

This may bring some of the big resource companies to the party as the life of the reserves is so long.
.

AO

[mikey62] 26/6/2014 09:13

Astonished this hasn't gone quite a bit higher on this news re Iluka.Even a low ball bid will be at a hefty premium to the present share price If the bid doesn't materialise it still demonstrates that a peer sees it as undervalued and this would eventually be rectified one way or another.

[libertine] 26/6/2014 09:09

Iluka Resources Approaches Kenmare to Add Mozambique Mine


By David Stringer Jun 26, 2014 7:42 AM GMT+0100


Iluka Resources Ltd. (ILU), the world's biggest zircon producer, approached Dublin-based Kenmare Resources Plc (KMR) over a potential combination.

Buying Kenmare would give Iluka the smaller company's Moma titanium minerals mine in Mozambique, which produces ilmenite and rutile and contains reserves of zircon. Rio Tinto Group, the world's second-biggest mining company, this week forecast a return to demand growth for zircon, driven by recovery in China and Western Europe.

"There is no certainty that any transaction will be progressed or, in particular, that an offer will be made," Perth-based Iluka said today in a statement. Iluka has a market value of A$3.5 billion ($3.3 billion), while Kenmare is valued at 334 million pounds ($567 million).

Iluka is seeking to take advantage of depressed markets to secure future growth, Chief Executive Officer David Robb said last month. Kenmare's stock has dropped 42 percent this year and closed yesterday in London at 12 pence. Iluka rose 1.8 percent to A$8.45 in Sydney trading, trimming its decline this year to 2.1 percent.

Kenmare Managing Director Michael Carvill recently had been approached by Iluka with an offer of 20 pence a share, The Times reported today.

Titanium dioxide is mainly used in paint, while zircon is used ceramic tiles and refractories.

[ray164] 26/6/2014 09:04

Strangely muted response to this news. Despite the debt pile the Moma mine is a massive resource with many decades of production ahead. Clearly this is an opportunistic bid to try to take advantage of the current low mineral prices.
I believe the assets should be worth several times the current share price even at todays depressed values.

[libertine] 26/6/2014 09:04

Australia's Iluka Resources seeks to merge with Kenmare Resources

Thursday 26 June 2014 07.44
Kenmare's main asset is the Moma titanium minerals mine in Mozambique Kenmare's main asset is the Moma titanium minerals mine in Mozambique

Australian mineral sands miner Iluka Resources has proposed to take over Dublin-based rival Kenmare Resources amid a sharp downturn in their key markets, it said in response to media speculation.

The approach comes at a time when both companies are suffering from weak prices for mineral sands products like zircon and titanium.

Shares in Kenmare are down 42% this year. The company has a market value of about $545m.

"Iluka confirms that it has made an approach to Kenmare in relation to a potential combination, which may be implemented by way of an offer for Kenmare," Iluka said in a statement to the Australian stock exchange.

Iluka, a A$3.5 billion ($3.29 billion) company, is the world's top producer of zircon, which is used in ceramic tiles.

The move on Kenmare, whose main asset is the Moma titanium minerals mine in Mozambique, fits with Iluka chief executive David Robb's strategy to use the company's strong balance sheet to expand by hunting for bargains amid the market slump.

He said if a deal goes ahead it should probably be as a nil-premium merger or only a small premium, given that there would only be modest synergies in putting the two companies together, while there would be longer term benefits for the market.