Industry News » Another Company Bids for Gemfields

Another Company Bids for Gemfields

Gemfields has received another takeover offer, this time from Chinese holding company Fosun Gold. Fosun Gold’s parent Fosun Group, headed by Chinese billionaire Guo Guangchang, owns and invests in a variety of businesses and consumer brands, including the Club Med resort chain.

This is the second takeover offer for Gemfields in as many months. In May, the colored-stone miner received an unsolicited offer from its largest shareholder, Pallinghurst Resources.

The Fosun offer would pay 40.85 pence per Gemfields share, a 15.1 percent premium over its June 13 closing price, and a 10.1 percent premium compared to the offer made by Pallinghurst.

Gemfields has said that Pallinghurst’s unsolicited offer undervalues the company.

“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,” said a statement from Fosun.

June 14, 2017 by ROB BATES

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