Relief that Pallinghurst may not be buying Gemfields leads to jump in share
Bengaluru — China’s Fosun International joined the race for Fabergé owner Gemfields, with an approach that valued the London-listed company at £225m. Gemfields, which mines for emeralds and amethysts in Zambia and for crimson and pinkish-red coloured ruby and corundum in Mozambique, has already received a buyout offer from leading shareholder JSE-listed Pallinghurst Resources. Investors appeared relieved that Pallinghurst may not be buying Gemfields, sending its share up 8% to R3.40 on Wednesday morning. "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," Fosun said. Fosun Gold, part of acquisitive conglomerate Fosun International, said it had proposed buying Gemfields at a price of 40.85 pence per share, a premium of 15.1% to Gemfield’s closing price of 35.5p on Tuesday. Pallinghurst had offered 38.5p per share to buy the remaining 52.91% i...
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