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Pallinghurst Emerges as Sole Gemfields Bidder
Jun 27, 2017 5:33 AM
By Rapaport News
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RAPAPORT... Pallinghurst Resources has received backing from its owners
to acquire Gemfields, paving the way for the private-equity firm to go ahead
with the deal after the only other bidder dropped out.
Pallinghurst, Gemfields’ largest investor, won a 96% mandate
from its own shareholders to buy the colored-gemstone miner at a meeting
on the island of Guernsey on Monday. Pallinghurst also has acceptances for the deal from
more than 75% of Gemfields shareholders, it announced in a statement the same
day.
A rival offer from China’s Fosun Gold has lapsed as a
result, according to a response from the Shanghai-based group.
“With more than 96% of the voting shares in favor of the
Gemfields acquisition, Pallinghurst’s management has been given a clear and
emphatic mandate,” said Pallinghurst CEO Arne Frandsen. “As management, we
value and respect this vote of confidence from our shareholders, and will carry
out this mandate without delay.”
However, Gemfields’ management — which had recommended the
Fosun deal — repeated its earlier claim that Pallinghurst’s proposal
“significantly undervalues Gemfields and its prospects as a leading player in
the colored-gemstone sector.” The company continued to advise shareholders not
to take any action.
Pallinghurst has offered each Gemfields shareholder 1.91
Pallinghurst shares in exchange for each share in the gemstone miner. However,
its bid offers no premium to the company’s share price.
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Tags:
Arne Frandsen, China, colored gemstones, Fosun Gold, Gemfields, gemstones, M&A, mergers and acquisitions, Pallinghurst, Pallinghurst Resources, Rapaport News, shanghai
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