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Pallinghurst to Delist Gemfields by End of July

Jul 16, 2017 8:29 AM   By Rapaport News
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RAPAPORT... Private-equity firm Pallinghurst Resources plans to delist colored-gemstone miner Gemfields from London’s Alternative Investment Market (AIM) by the end of July after nearly 90% of Gemfields shareholders accepted its takeover offer.

Pallinghurst said it intends to exercise its rights to acquire all remaining Gemfields shares, subject to reaching the requisite threshold. The investment group has also started preparations to obtain its own premium listing on the London Stock Exchange.

“The revitalization of Gemfields’ operations is urgently needed given Gemfields’ tight financial circumstances,” said Pallinghurst CEO Arne Frandsen.

“With debt levels at Gemfields at an all-time high, the need for conservative financial management is evident. That said, further investments in the operations will be sought to secure profitable expansion and growth as stated in our offer document as we develop Gemfields fully as the De Beers of colored gemstones,” he continued.

In June, Pallinghurst received backing from its owners to acquire Gemfields, paving the way for it to move forward 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 miner at a meeting on the island of Guernsey. A rival offer from China’s Fosun Gold lapsed after most Gemfields shareholders accepted Pallinghurst’s offer.

Pallinghurst took control of Gemfields in 2008 by selling the Kagem emerald mine in Zambia to the company in return for shares. The deal made Pallinghurst and its co-investors the majority shareholders of Gemfields, which expanded into ruby mining in 2012 by acquiring the Montepuez deposit in Mozambique.

In 2013, the miner bought jeweler Fabergé from Pallinghurst for $142 million, which brought the equity firm’s share in Gemfields to 47%.  
Tags: Arne Frandsen, China, colored-gemstone, Fabergé, Fosun Gold, Gemfields, Kagem, Montepuez, Mozambique, Pallinghurst, Pallinghurst Resources, Rapaport News, zambia
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