Pallinghurst’s bid for Gemfields the only game in town as Fosun folds
The premium cash offer for London-listed Gemfields by Chinese group Fosun Gold has lapsed, leaving Pallinghurst Resources’ nil-premium share offer the only game in town. Fosun told investors the offer had lapsed after 96% of Pallinghurst’s shareholders mostly approved the bid for Gemfields, the world’s largest listed producer of gemstones, with a large emerald mine in Zambia and a ruby mine in Mozambique. Pallinghurst, which is listed on the JSE and has mining veteran Brian Gilbertson as chairman, is a mining investment holding company, with interests in platinum and manganese in SA. Pallinghurst feels it can better operate Gemfields. An independent committee set up by Gemfields to assess the Pallinghurst offer, which closes on July 4, has said the offer undervalued Gemfields and is "derisory". However, with the Fosun deal falling away, Pallinghurst shareholders who have not yet tendered their shares into the Pallinghurst offer would have to consider whether they would want a compan...
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