GEMFIELDS MINORITY SHAREHOLDERS “ANGRY” AT TAKEOVER BID
Pallinghurst Resources Ltd. which owns 47% percent of rough miner Gemfields, has offered to buy up the rest of the shares, but minority shareholders are said to be “angry”, according to Gem Konnect, calling for the miner’s independent directors on the board “to fight the bid strongly”.
According to the report, the minority shareholders feel that the bid is undervalued, and “in essence would allow Pallinghurst to buy the company for nothing”.
The bid values Gemfields at £211 million ($274 million), while analysts claim that “a reasonable valuation” would be in the £250-£275 million ($325-$357 million) area. According to the report, Pallinghurst claims that Gemfields “suffers from high costs and poor liquidity on the London market”, and the bid would allow it to “reach its full potential”.
The Gemfields board said it was considering the offer, and has asked shareholders “not to take any action” in the meantime.