The spirited rejection by an independent committee within Gemfields of the unsolicited, nil-premium bid by JSE-listed Pallinghurst Resources to take over the company, calling the offer "derisory", may count for little because the bid has received the backing of more than 75% of shareholders. Pallinghurst, which is chaired by Brian Gilbertson, unveiled its offer of Pallinghurst shares for the remaining 53% of AIM-traded Gemfields shares it does not own on May 19, as part of a shake-up of the company and to address what the Pallinghurst board regards as the under-performance of the emerald and ruby miner, which operates in Zambia and Mozambique. Pallinghurst said, six days later, that it had secured irrevocable undertakings to support the bid from holders of slightly more than 28% of Gemfields’ shares, pushing it over the 75% level mark, where the offer became unconditional to other shareholders. However, on Wednesday, Gemfields said the independent committee, which includes CEO Ian H...
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