Kenmare Resources has announced the launch of a proposed tender offer to purchase up to 13.5% of the Company’s issued ordinary shares.
The Tender Offer executes on the Company’s stated intention to increase shareholder returns after the successful completion of its major capital projects and is supported by strong operational performance of Kenmare and its subsidiaries and commodity market strength in 2021.
- The Company proposes to return up to £61.8 million to eligible shareholders by way of a Tender Offer at £4.17 per Ordinary Share
- The Tender Offer is for up to 13.5% of the Company’s issued share capital. Under the Tender Offer, each Shareholder is entitled to have up to 13.5% of its shareholding purchased by the Company at the Tender Price
- The Tender Offer is to be funded from the Company’s existing and available cash resources and borrowings under the Group’s borrowing facilities and remains open until 1.00 p.m. on 9 December 2021
- Eligible Shareholders will be able to decide whether to tender none, some or all of their Ordinary Shares within the overall limits of the Tender Offer
- The Tender Offer will provide Eligible Shareholders with an opportunity to sell part or all of their Ordinary Shares and to receive their respective share of the cash which the Company is seeking to return
- Directors who are beneficially interested in Ordinary Shares have indicated that they will not tender Ordinary Shares pursuant to the Tender Offer
- The Tender Offer will provide Eligible Shareholders holding 500 Ordinary Shares or fewer in certificated form an opportunity to sell their entire shareholding in the Company without the dealing costs or commissions that might otherwise make such sale uneconomic