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Chatila Makes Cash Offer for Diamond Circle Capital

The Deal is Made in Concert With Former Director Protopapa

May 8, 2012 3:23 PM   By Jeff Miller
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RAPAPORT... Abdallah Chatila has acquired 1,272,615 shares in Diamond Circle Capital, a diamond investment firm, from Fortress Commodities Fund Ltd. at a price of $3.50 per share and in so doing is making an offer for all remaining shares at the same price. According to a filing with the London Stock Exchange today, Chatila, in concert with Pavlo Protopapa and Evermay Global Inc. who together hold 25.93 percent of the voting rights in Diamond Circle Capital,  is making the $14.8 million offer for shares that are not already held by the two parties.

The filing stated that Chatila's acquisition of Diamond Circle Capital was in line with his strategy to build substantial holdings in the diamond and jewelry industries. The Chatila family established a diamond and jewelry business in Geneva in the late 1880's and he has worked for the business since 1996, having graduating as a gemologist from the Gemological Institute of America (GIA) in 1993.  Chatila is resident of Geneva and reported his net worth from $109 million (CHF 100 million) to $164 million (CHF 150 million), depending on the valuation of his assets. His investments are held through Rachaya Holding S.A., which is an investment firm that deals in real estate, art, jewelry, insurance and private equity.

Protopapa, who was a director at Diamond Circle Capital until February 29, controls Evermay Global and is the chief financial officer for Steinmetz Diamond Group and a managing director of Onyx Financial Advisors. He is a personal friend of Chatila and they are both ''passive shareholders'' in a technology business, in which neither play an active role in management, according to the filing. He holds 375,000 shares in Diamond Circle Capital in his own name and another 1,927,385 shares through Evermay Global.  These interests together represent approximately 26 percent of the entire issued share capital of Diamond Circle Capital.  

Just two weeks ago, Diamond Circle Capital reported unrealized gains of $5.64 million for the year that ended on December 31, compared with a loss of $264,909 in 2010. Profits surged to $3.44 million compared with a loss of $2.3 million in 2010.  At the close of the financial period, Diamond Circle Capital reported holding diamonds worth $47.97 million, up from $44.74 million one year earlier. Total company assets rose 5.6 percent year on year to $53.49 million. According to the company's regulatory filing, the portfolio consisted of approximately 68 percent colorless diamonds and 32 percent was of colored diamonds.

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Tags: capital, chatila, circle, diamond, investment, Jeff Miller, shares
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All that for 10% ROI ?
May 8, 2012 8:04PM    By Adi Levy
So making 10% ROI gets you in the news these days...hmmmm...
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