15 Jun Gemfields subject of $288 million takeover bid from Chinese firm
The world’s largest coloured gem producer Gemfields (LSE:GEM) has received a US$228 million takeover bid from Fosun Gold, a unit of Chinese conglomerate Fosun International.
Fosun’s valuation of the company represents a 15.1% premium on the miner’s June 13 closing price, and a 10.1% premium on the current implied price per share from a recent takeover bid from South African private equity group Pallinghurst.
Last month, Pallinghurst made an offer of $250 million for the company, which owns the luxury Fabergé jewellery brand.
“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 Fosun.
Gemfields said the talks with Fosun will result in a cash offer at a superior value to Pallinghurst’s bid, which ‘significantly undervalued’ the company.
The miner accounts for roughly a third of the world’s emeralds and rubies from just two mines in Mozambique and Zambia.