Investment banker Andrew Webb is facing pressure from parts of the shareholder base to surrender the mining company’s independence. In 2014, when titanium minerals miner Kenmare Resources became the subject of an unwanted bid approach from Australia’s Iluka Resources, the Irish company turned to Rothschild investment banker Andrew Webb to help lead its defence. Iluka finally got the message in late 2015 and walked away.
But by then Iluka’s share-based bid had been reduced dramatically over 18 months, from almost €500 million to about €80 million – following a slump in the price of ilmenite, the key titanium mineral produced at Kenmare’s Moma mine in Mozambique, as China ramped up ore supplies at a time when demand was also waning. Months after fending off the would-be suitor, Kenmare, which has been led since 1986 by managing director Michael Carvill, resorted to a $275 million (€255 million) rescue fundraising, mainly to pay down debt, which stood at almost $375 million at the time