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Irish company Kenmare Resources has rejected an acquisition proposal from Iluka Resources, arguing that the world’s largest zircon producer had not recognised the real vale of Kenmare’s mining asset in Moçambique, the Irish company said in a statement.
Iluka Resources offered 0.036 new shares for each Kenmare share as part of a “preliminary” proposal, according to Thursday’s statement.
“The Kenmare board has rejected Iluka’s proposal as it does not recognise the value f the Moma mine as an asset with a long lifetime and reduced costs,” the statement said.
This proposal from Australia’s Iluka Resources values Kenmare 468 million pounds (US$796 million), which is a premium of around 40 percent on current market price.
The statement also said that M&G Investment Management, the company that manages investment funds controlling 19.05 percent of Kenmare Resources had approved the board’s decision.
Kenmare Resources explores heavy sands deposits in Moma, in Mozambique’s Nampula province and Iluka Resources is also involved in heavy sands exploration and is the world’s largest producer of zircon and titanium oxide. (mchb/MZ)