Pallinghurst bids for remaining stake in gemstone miner Gemfields
Pallinghurst launched a no-premium all-share bid for the 52% stake in gemstone miner Gemfields it does not own, marking a more aggressive stance in managing its portfolio. Gemfields, which according to Bloomberg, was hovering around a nine-month low on Thursday, shot higher on Friday when 47% shareholder Pallinghurst unveiled its proposal to take over and delist the company from London’s Alternative Investment Market. The plan was to use the South African manganese and platinum investments to cross-subsidise the ruby and emerald businesses in Mozambique and Zambia, respectively, cementing them as leading sources of each gemstone, said Pallinghurst CEO Arne Frandsen. Pallinghurst and "friends" control about 76% of Gemfields’ shares, making the transaction a done deal, with Alternative Investment Market rules allowing any shareholder with more than 75% of a company’s stock to delist the share, giving minority shareholders time to sell out of their stake. In this case, Gemfields shareh...
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