June 14, 2017 / 6:47 AM / 5 months ago

China's Fosun proposes to buy Faberge owner Gemfields

June 14 (Reuters) - China’s Fosun International Ltd joined the race for Fabergé owner, Gemfields Plc , after it made an initial proposal regarding a possible cash offer for the British precious stones miner.

Fosun Gold, part of Fosun International, said it proposed to but Gemfields at a price of 40.85 pence per Gemfields share, a premium of 15.1 percent to Gemfield’s closing price of 35.5 pence on Tuesday.

Fosun’s proposal values Gemfields, which mines for emeralds and amethysts in Zambia and for ruby and corundum in Mozambique, at 224.6 million pounds ($287.13 million).

Mining group Pallinghurst Resources Ltd, the largest shareholder of Gemfields, in May, offered to buy out the remaining 52.91 percent it does not already own for about 111.9 million pounds.

Gemfields said Pallinghurst’s offer “significantly undervalues” the company. ($1 = 0.7822 pounds) (Reporting by Noor Zainab Hussain in Bengaluru, editing by Louise Heavens)

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