Fosun Gold makes takeover offer and is in active talks with Gemfields; Board believes offer could lead to superior value than Pallinghurst's earlier offer
- The Independent Committee of the Board of Gemfields plc ("Gemfields" or the "Company") notes the posting of the offer document today in relation to Pallinghurst's unsolicited nil-premium offer for the entire issued and to be issued share capital of the Company not already held by Pallinghurst (the "Unsolicited Offer").
- As outlined in Gemfields' announcement on 31 May 2017, the Independent Committee has considered the Unsolicited Offer with its advisers and has unanimously concluded that its terms significantly undervalue the Company.
- 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 Company today announces that it 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. The Independent Committee believes this 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 2017. 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