Picture: ISTOCK
Picture: ISTOCK

Bengaluru — China’s Fosun International has increased its offer for Fabergé owner Gemfields to £256m ($324m), turning up the heat in a bid-battle with the largest shareholder of the London-listed company.

Fosun Gold, part of the acquisitive Fosun International conglomerate, said on Tuesday that it had increased its offer for Gemfields to 45p a share from an earlier proposal of 40.85p a share. This trumps a rival offer of 38.5p a share from mining group Pallinghurst Resources to buy the 52.91% of Gemfields it does not already own.

Gemfields, which mines for emeralds and amethysts in Zambia, and for crimson and pinkish-red coloured ruby and corundum in Mozambique, rejected the offer from Pallinghurst, saying it "significantly undervalues" the company. Pallinghurst has said it intends to de-list Gemfields from London’s junior market.

Gemfields said on Tuesday that its independent committee considered the terms of Fosun’s offer neither fair nor reasonable, but that in light of Pallinghurst’s offer it intended to recommend that shareholders accept Fosun’s bid.

Pallinghurst said on Monday that it had valid acceptances for its bid from shareholders owning 61.25% of Gemfield’s shares, including its own stake.

Reuters

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