Mineral sands group Sierra Rutile says in takeover talks

LONDON Tue Nov 19, 2013 2:30am EST

LONDON Nov 19 (Reuters) - Mineral sands producer Sierra Rutile, majority owned by specialist investment fund Pala Investments, said on Tuesday it was in takeover talks with unnamed parties.

"There can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming," the group, which operates in Sierra Leone, said in a statement.

The AIM-listed group has engaged RBC Capital Markets to act as its financial adviser in connection with a potential sale.

The group's main product is rutile, one of a group of titanium dioxide minerals mostly used in the manufacture of white pigment for the paint, plastics and paper industries.

Sierra Rutile shares closed on Monday at 56.75 pence, valuing the group at about 292 million pounds ($470 million).