Market Dynamics
Kenmare Resources: Statement re. Possible Offer
Time: 2014-07-01 Source from: Kenmare Resources plc
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 precondtions, 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.