(IDEX Online) - Gemstone miner Gemfields has received an approach from, and is actively engaged in discussions with, Fosun Gold regarding a possible competing offer for the entire issued and to be issued share capital of the company.
An Independent Committee of the Board of Gemfields advised against accepting an unsolicited nil-premium offer for the entire issued and to be issued share capital of the company from its largest shareholder, Pallinghurst, not already held by the firm.
That offer significantly undervalues the company, and in response to the Unsolicited Offer the Independent Committee has worked with its advisers to explore ways to deliver maximum value for shareholders and to protect the interests of minority shareholders.
The Independent Committee believes the Fosun Gold interest may lead to a cash offer at a superior value to Pallinghurst's Unsolicited Offer.
"The Independent Committee continues to strongly advise the company's shareholders to take no action in relation to the Unsolicited Offer and to wait for a further update on the status of discussions with Fosun Gold on or before 27 June. Pallinghurst has confirmed that the Unsolicited Offer will, at a minimum, remain open for acceptance until 4 July 2017."
There can be no certainty that any firm offer will be made by Fosun Gold, nor as to the terms on which any firm offer will be made, the firm added.
As required by the UK's Takeover Code, Fosun Gold is required, by not later than 5.00 p.m. on 5 August 2017, either to announce a firm intention to make.