Fosun Gold bids for Gemfields

By tabling a £224m bid for mining group Gemfields, Fosun Gold is looking to snatch Gemfields away from South African private equity group Pallinghurst, which last month tabled its own offer for the business. Fosun Gold has confirmed the cash offer, which is based on acquiring the entire issued share capital of Gemfields at a price of 40.85p per share.

The price represents a 15.1% premium on the Gemfields closing price of 35.50p on June 13. It is also a 10.1% premium on the offer made by Pallinghurst (37.10p)

In tabling the bid, Fosun said it was of the opinion that the offer provided Gemfields shareholders with “a compelling cash alternative at a significant premium to the Pallinghurst offer”. It added: “As a holding company rooted in China with a global presence, Fosun has interests in both the natural resources and consumer sectors. Fosun considers that Gemfields represents a compelling opportunity to continue to develop a leading gemstone producer with a dominant position in both global emerald and ruby production and a strong consumer brand.”

Gemfields, which owns the Faberge jewellery brand, has leading producing assets. It is the largest emerald producer with the Kagem Mine in Zambia and is also one of the largest ruby producers at the Montepuez mine in Mozambique.

See ----->http://canadastockjournal.blogspot.ca/2017/06/montepuez-ruby-mine-mozambique.html