Pallinghurst Resources declares its full control of Gemfields

Publié le vendredi 4 août 2017, par

JSE-listed Pallinghurst Resources Ltd on Friday declared its full control of the world’s leading gemstones producer Gemfields plc with tremendous high-value assets in Africa.

The investment funds said the compulsory acquisition process has commenced and expects to have whole ownership of Gemfields by the end of August 2017.

Commenting on the move, Brian Gilbertson Chairman of Pallinghurst said : “Gemfields is a uniquely attractive business with strong growth potential. We intend to focus on profitability in pursuit of the vision of building the “De Beers of coloured gemstones”.

Already, Pallinghurst reported its managerial responsibility for Gemfields as non-executive directors, the CEO and CFO have resigned, following delisting from AIM on 28 July of the mining company that now stands as unlisted subsidiary of Pallinghurst.

Consequently, the board and management of Gemfields have been reconstituted though with a predominance of veterans from the British mining company covering all the key disciplines.

A thorough review and analysis of the operations, including processes, plans, budgets and financial position is underway.

For now, debt situation of the major gemstones producer is reported at record levels caused essentially by a material drop in emerald production at Kagem mine in Zambia.

This resulted in a 54 million $ year-on-year decline in Kagem’s auction revenues for the year ending 30 June 2017 for Gemfields that has 75% ownership of Kagem mine and 100% ownership of Fabergé Ltd, one of the world’s most recognised luxury brand names.

Besides the world-class Kagem, Gemfields Plc has 75% ownership of world-class Montepuez ruby mine in Cabo Delgado province in northern Mozambique, 50% interest in the Kariba amethyst mine in Zambia and several exploration assets on colour gemstone in Madagascar and Ethiopia.

The Guernsey-incorporated Pallinghurst’s full control of Gemfields is the climax of its efforts to win the takeover competition with the Chinese conglomerate Fosun Gold that offered higher and received blatant support from the Independent Committee of the Board of Gemfields set up to assess the bids.

Pallinghurst offered 1.91 share for each Gemfields share valuing each Gemfields share at 36.42 pence and the entire issued ordinary share capital of Gemfields at approximately 201 million £ less than 256 million £ from Fosun.