Pallinghurst Garners Enough Support For Gemfields Takeover And De-Listing
June 28, 17
(IDEX Online) – After weeks of move and counter-move, Pallinghurst has received the 75 percent support of Gemfields investors to back its takeover of the gemstone miner and to de-list the London Stock Exchange traded company.
Shares in Gemfields PLC slumped after Pallinghurst Resources revealed it had received sufficient support from shareholders to take its plans to de-list the emerald and ruby miner forward.
Pallinghurst already owned 47 percent of Gemfields and announced that it had received the support of investors representing a further 28 percent of the shares in issue.
The news cancels out a rival offer from Chinese company Fosun Gold, even though an Independent Committee established by Gemfields recommended that shareholders reject it since it offered no premium over the Gemfields share price.
Pallinghurst wants full control of Gemfields, saying that the miner is held back by limited access to equity and debt capital, low liquidity in trading of its shares, and a high cost base, which have all hit its profitability.
Pallinghurst said an revamp of the firm would allow it to perform to its full potential.