Kore Potash PLC Share News (KP2)

(Alliance News) - Kore Potash PLC announced on Tuesday that it has received takeover approaches from two suitors operating in the potash industry.

The London-based owner of the Kola and DX potash projects in the Republic of Congo stressed that these two parties are in the early stages of evaluating the possible acquisition of the entire shares of the company.

Shares in Kore were up 8.4% at 3.36 pence in London on Tuesday, and they rose 8.5% to 77 rand cents in Johannesburg. In Sydney, they ended flat at AUD0.067 on Tuesday.

Expressions of interest come after Kore in June signed an agreement that would see OWI-RAMS GMBH fund its Kola project.

OWI-RAMS had indicated it intended to arrange and then provide a funding package for Kola, amounting to about USD2.2 billion, or nearly ZAR39 billion, through a blend of senior secured project finance and royalty financing.

Kore said on Tuesday it has undertaken a review of all available options, including a possible sale of the company, and has commenced a formal sale process. The formal sale process will enable the group and its advisers to engage more widely with potentially interested parties.

Each of the interested parties has confirmed that it will participate in the formal sale process, the group said.

While non-binding indicative expressions of interest have been received from each of the two parties, these are at a preliminary stage, it said.

Kore said it has appointed SP Angel Corporate Finance LLP as sole financial adviser.

It said its announcement on Tuesday does not represent a firm intention by any party to make an offer, and there can be no certainty that any offers will be made as a result of the formal sale process.

"The search for a suitable contract operator and strategic partner has led to certain of these potash industry players exploring the opportunity to acquire an equity stake in Kore," Kore said.

"It remains possible that, following the formal sale process, the board may conclude that Kore and its stakeholders would be best served by alternative strategic options available to the company, including by Kore continuing to trade on AIM, the ASX and JSE as an independent entity," Kore said.

Kore also said on Tuesday that it expects to require further funding by the end of October 2025 and will require funding no later than this month.

It said it is considering possible sources of funding, including equity and debt, to fund the construction of the Kola project, should a possible sale of the company not occur.

By Artwell Dlamini, Alliance News senior reporter South Africa

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