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GEMFIELDS CONSIDERING BID OFFER FROM FOSUN GOLD

Gemfields has confirmed that it is considering an offer to buy its minority shareholder stake
Ruby stone
Credit: Public Domain

Coloured gemstone miner Gemfields has confirmed that it is “considering an offer by Hong Kong-based Fosun Gold to buy out the minority shareholder stake”, according to Gem Konnect.

 

In May, it was reported that Pallinghurst Resources, which holds 47% of Gemfields stock, had made an unsolicited bid to buy out the minority shareholders and take the company private. In early June, it was reported that an independent committee appointed by Gemfields to review the offer, concluded that it “significantly undervalues the company”. The bid valued Gemfields at £211 million ($274 million), while analysts claim that “a reasonable valuation” would be in the £250-£275 million ($325-$357 million) area.

 

In contrast to Pallinghurst’s bid, the Fosun Gold bid is a solicited one “that resulted from the deliberations of the advisors and the committee”, according to Gem Konnect.



Tags: Diamonds News, Diamond Industry News, Hong Kong News

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