Dublin and London listed mining company Kenmare Resources is set to return up to £61.8 million to shareholders as part of a plan to buy up to 13.5 per cent of its issued shares.
The company, which is a leading global producer of titanium minerals and zircon, said the move was in keeping with its stated intention to increase shareholder returns following the successful completion of its major capital projects.
Under the tender offer, eligible shareholders could get at £4.17 per ordinary share, with the offer funded from existing and available cash resources and borrowings. Shareholders can tender none, some or all of their shares, within the limits of the tender offer.
Those holding 500 ordinary shares or fewer will have an opportunity to sell their entire shareholding in the company without the dealing costs or commissions.
In 2018, Kenmare announced a dividend policy to return a minimum of 20 per cent of profit after tax to shareholders, increasing that to 25 per cent for 2021.
The offer is subject to shareholder approval, which will be sought at an extraordinary general meeting on December 9th.
