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Pallinghurst Emerges as Sole Gemfields Bidder

China’s Fosun Gold pulls out of running to buy gemstone miner.
Jun 27, 2017 5:33 AM   By Rapaport News
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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.
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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