7th Dec 2015 07:50
LONDON (Alliance News) - Iluka Resources Ltd on Monday said it has withdrawn its takeover offer for Kenmare Resources PLC after concluding the deal would be unlikely to be pushed through following a deterioration in the commodities market environment.
Iluka made a GBP190.0 million takeover bid for Kenmare in April this year, with the pair having originally entered talks about a possible combination in June 2014.
In November, Iluka then made a revised bid for Kenmare at a lower value than the original proposal and, on Monday, said based on recent talks with the Kenmare board it was unlikely it would be able to push the deal through.
As a result, it has withdrawn its offer for Kenmare.
Kenmare said it is now focused on securing its future as an independent entity and, in a separate statement, said it has agreed to secure a USD100.0 million investment from State General Reserve Fund, the sovereign wealth fund of the Sultanate of Oman.
The investment will be made through a firm placing of shares, conducted through a Kenmare subsidiary.
The company will also enter talks with its lenders and key shareholders on the terms of its planned capital raising and remains in talks with financiers over waivers for its existing senior debt facility.
By Sam Unsted; [email protected]; @SamUAtAlliance
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