Kenmare Resources plc (LSE:KMR) shares surged 38% today after the company rejected a £474 million takeover proposal from a consortium led by Oryx Global Partners and former managing director Michael Carvill, stating that the offer undervalued its business and future prospects.
The consortium’s proposal was pitched at 530 pence per share, but Kenmare, which operates the Moma Titanium Minerals Mine in Mozambique, said this failed to reflect the company’s true value.
Its minerals, including titanium and zircon, are widely used in paints, plastics, and ceramics.
To give the consortium a chance to improve its financial terms, Kenmare has agreed to grant limited due diligence access. However, the company stressed that there is no certainty a firm bid will follow.
Carvill, who stepped down as Kenmare’s managing director last year, is now attempting to return at the helm of a takeover bid. The company said it would provide further updates if and when appropriate.
In early trading, the stock was up 105.77p at 380.77p.