Pallinghurst capitalizes strong supports to takeover Gemfields

Pallinghurst Resources Ltd received 96% shareholder support to takeover Gemfields Plc, a global leading gemstones producer with robust assets in Africa.

The JSE listed natural resources Investment Company garnered, at the general meeting held on 26 June in Guernsey, the overwhelming support which made “wholly unconditional” its offer for Gemfields acquisition.

This occurred as Pallinghurst faces a solid competitive offer from the Chinese conglomerate Fosun and a constant refusal from the independent Committee of the Board of Gemfields plc for undervaluing offer.

Under the terms of the offer, each Gemfields Shareholder will be entitled to receive 1.91 Pallinghurst shares for each Gemfields Share. In the mean time, Fosun offered 45 pence in cash for each Gemfields Share, valuing Gemfields’s existing issued and to be issued share capital at approximately £256 million.

“With more than 96% of the voting shares in favour of the Gemfields acquisition, Pallinghurst’s management has been given a clear and emphatic mandate” Arne H. Frandsen, Chief Executive of Pallinghurst, commented.

He went on to say : “As management, we value and respect this vote of confidence from our shareholders, and will carry out this mandate without delay”.

The AIM listed Gemfields is an Aladdin’s cave like company for color gemstones as it global portfolio includes 75% ownership of both world-class Kagem emerald mine in Zambia and Montepuez ruby mine in Mozambique, 50% interest in the Kariba amethyst mine in Zamabia and 100% of Fabergé Ltd, one of the world’s most recognised luxury brand names.

Up until recently, Pallinghurst owned 47.09% of Gemfields’ existing issued share capital, representing 37.92% of Gemfields’ existing issued share capital and 9.17% of Gemfields’ existing share capital held by Fabergé Conduit Ltd for the benefit of Pallinghurst.

In the race for the takeover and following general meeting 26 June, Pallinghurst garnered supports from other Gemfields shareholders that increase to 75.18% its possession of the existing issued share capital of Gemfields, since .

With the breakthrough, Pallinghurst expects to become an "evergreen" company, with its life extended by 50 years and considers implementing a restructuring of the group.