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Pallinghurst lowers acceptance threshold for Gemfields bid
June 20, 2017 / 7:26 PM / 5 months ago

Pallinghurst lowers acceptance threshold for Gemfields bid

(Reuters) - Pallinghurst Resources Ltd (PGLJ.J) said on Tuesday it lowered the minimum number of acceptances from shareholders of Gemfields Plc GEM.L on its takeover offer, after China’s Fosun International raised its offer for the gemstone company.

Pallinghurst said it lowered the acceptance condition to 60 percent, from 75 percent, making its offer unconditional.

The company said on Monday it won valid acceptances for its bid from shareholders owning 61.25 percent of Gemfield’s shares, including its own stake.

Earlier in the day, Fosun Gold, part of the acquisitive Fosun International conglomerate, increased its offer for Fabergé owner Gemfields to 256 million pounds or 45 pence apiece from 40.85 pence.

Fosun’s offer has turned up the heat on Pallinghurst, which owns 47.09 percent of Gemfields and has offered 38.5 pence per share for the remaining stake.

Gemfields said its independent committee considered the terms of Fosun’s offer were neither fair nor reasonable, but that in the light of Pallinghurst’s offer it intended to recommend shareholders to accept Fosun’s bid.

Gemfields mines for emeralds and amethysts in Zambia and for crimson and pinkish-red coloured ruby and corundum in Mozambique.

Reporting by Sanjeeban Sarkar and Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur

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