London-listed Kenmare Resources announced that, following the closure of the odd-lot offer on September 30, the company has bought back 92 419 of its ordinary shares at £4.82 each.
The odd-lot offer was announced on August 24 to reduce Kenmare’s shareholder base. As a result of its restructuring and recapitalisation in 2016, the shareholder base was considered to be unusually large for a company of its size.
“The odd-lot offer facilitated the disposal by eligible odd-lot holders of their shares at a 5% premium, without the dealing costs that would typically render such disposal uneconomic, while giving active shareholders the ability to opt out of such a disposal.
“The odd-lot offer is to the benefit of shareholders as a whole as it will lower the company’s cost base,” Kenmare says.
Following the implementation of the odd-lot offer, the number of certificated shareholders has been reduced by about 81.3%.
The shares bought by the company represent about 0.097% of the existing issued share capital of Kenmare and will be cancelled. Following this cancellation, the company’s issued ordinary share capital will be 94.8-million ordinary shares.
Kenmare operates the Moma titanium minerals mine in Mozambique.