(Alliance News) – Kenmare Resources (KMR) on Thursday said it received a non-binding proposal from UAE-based Oryx Global Partners Ltd and Michael Carvill, together a consortium, for a potential all-cash takeover offer.
The Mozambique-focused producer of titanium minerals and zircon said the most recent proposal received was at a price of 530 pence per share. Kenmare shares had closed at 275.00p on Wednesday in London, meaning the proposal of 530p was a 93% premium.
Comment: It was interesting that the massive premium / see through valuation for KMR did not send the soaring (so far), as one might have expected. While we know the London market is reticent to value anything even remotely fairly, and keen on marking down companies as much as possible, the KMR announced is positive in a significant way. This should mean that titanium play Empire Metals (EEE), up 6% yesterday, and mineral sands group Capital Metals (CMET), with ilmenite, rutile, zircon, and garnet, up 3%, and rutile group Sovereign Metals (SVML), do rather better when the stock market wakes up on the significance of the KMR news.
Avacta Therapeutics (AVCT), a life sciences company developing next generation peptide drug conjugates (PDC) targeting powerful anti-tumor payloads directly to the tumor, announces that it has agreed to sell Launch Diagnostics Holdings Limited and its subsidiaries, its UK-based and largest diagnostics unit, for £12.9 million in cash to Duomed Belgium NV, a subsidiary of Palex Healthcare Group S.L.U. Completion of the sale is expected by the end of April 2025, subject to customary closing conditions. The sale proceeds will be used to further Avacta’s pre|CISION® platform.
Hunting (HTG), the precision engineering group, today announces the acquisition of the Organic Oil Recovery technology from its founding shareholders, for a consideration of $17.5 million. Hunting has acquired the entire portfolio of intellectual property, comprising over 25 discreet patents, the distribution rights for the technology, and the laboratory located in California, US.
Comment: Yesterday HTG said it was eyeing up US opportunities, and lo and behold, today we have news of a US acquisition.
Just Group (JUST) announces its results for the year ended 31 December 2024. David Richardson, Group Chief Executive Officer, said: “We made a pledge three years ago to double profits over five years. We have significantly exceeded that target in just three years and created substantial shareholder value as a result. Our markets remain buoyant and we are confident in our ability to grow earnings at an attractive rate from this significantly higher level. We remain committed to compounding further growth in shareholder value.
Comment: No one likes a show off. But in this case the boasting is appropriate, a point underlined by last year’s 89% share price rise.
Sovereign Metals (SVML) announced its Half-year Report. The Company said it plans to update the market on the following progress in the coming months: Planned MRE upgrade. Further graphite test work results as the Company continues to advance the qualification of its graphite product for the lithium-ion battery and traditional graphite sectors. Progress in discussions with future potential end-users of rutile and graphite. Updates on community and social development programs. Further rehabilitation aspects of the Pilot Phase. Progress of the DFS, which is targeted for completion in Q4, 2025.
Comment: While the market is warming to SVML, a point which should be helped along by the Kenmare deal, the extensive list of goals for the rest of 2025 is supportive in its own right.
Jersey Oil & Gas (JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, notes that Dana Petroleum has terminated the agreement with NEO Energy, in relation to the proposed purchase of the Western Isles floating, production, storage and offloading vessel. JOG said “The route to unlocking the Buchan development continues to depend on achieving satisfactory conclusions in respect of the on-going fiscal and regulatory consultations. The fiscal consultation was kicked off yesterday and encouragingly, while the details are yet to be fleshed out, it was apparent that the government has heard many of the concerns of the industry.”
Comment: There are posts that listen better than a government with its let’s have (Net) Zero energy policy and import it from other countries, while taxing the consumer to death.
Premier African Minerals (PREM) announced a subscription today to raise £600,000 before expenses at an issue price of 0.0125 pence per new ordinary share primarily for the Zulu Lithium and Tantalum Project In addition, the Company has settled US$0.3 million (equivalent to £0.23 million) of contractor’s invoices of Zulu through the issue of 1,840,000,000 new ordinary shares in the Company at the Issue Price.
Comment: It would appear that yesterday’s rather ominous sounding RNS regarding the company’s funding prospects focused minds and wallets, with a keep the lights funding on the result. Perhaps the company is now too small to fail.
CAP-XX (CPX), a world leader in ultra-thin supercapacitors, announced a new Master Distributor Agreement with Waldom Electronics. This strategic partnership will enhance global accessibility to CAP-XX’s supercapacitor solutions by leveraging Waldom’s extensive distribution network allowing CAP-XX to extend its reach to high-volume global distributors, including Arrow Electronics, Inc. and Avnet, Inc.
Comment: Although the newsflow from CPX has been encouraging of late, it is probably the case that the company needs to work on educating those who have forgotten their Physics GSCE what a capacitor does, and what its edge in the market is.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
