Pallinghurst shores up its lead to takeover Gemfields

Pallinghurst Resources Ltd has highly secured its lead in the tug of war to takeover the multinational Gemfields Plc that holds à robust portfolio of high value assets of colour gemstones in Africa.

In an update, the JSE listed investment funds reported that, as at 1:00 p.m. on 4 July 2017, it totaled approximately 85.94% of the existing issued share capital of Gemfields.

The reinforced lead is consecutive to the reception of valid acceptance in respect of Gemfields Shares representing approximately 48.30% of the existing issued share capital of the British world leading gemstones producer.

Pallinghurst Resources already holds 37.64% of the existing issued share capital of Gemfields Plc the wholly owner of Fabergé Ltd, one of the world’s most recognised luxury brand names.

Commenting on the significant step, Arne H. Frandsen, CEO of Pallinghurst, said : "I am delighted that together with the shares already held by Pallinghurst Group, we have received acceptances representing more than 85% of Gemfields’ share capital”.

“We look forward to securing a seamless and rapid handover”, he added, enjoying a successful unsolicited all-share firm offer of Pallinghurst to acquire the entire issued and to be issued ordinary share capital of Gemfields plc that it does not already hold.

Under the terms of the offer, each Gemfields Shareholder will receive 1.91 Pallinghurst shares for each Gemfields Share. The offer valued each Gemfields Share at 36.42 pence and the entire issued ordinary share capital of Gemfields at approximately £201 million.

The bid was less than the cash offer from the Chinese Fosun Gold that received a blatant support from the Independent Committee of the Board of Gemfields set up to assess the offers.

The Chinese conglomerate offered 45 pence in cash for each Gemfields Share, that valued Gemfields’s existing issued and to be issued share capital at approximately £256 million.

The takeover tug of war was worth as Gemfields Plc has a portfolio including 75% ownership of both world-class Kagem emerald mine in Zambia and Montepuez ruby mine in Mozambique.

In addition, Gemfields holds 50% interest in the Kariba amethyst mine in Zambia and several exporation assets on colour gemstone in Madagascar and Ethiopia.