Faberge owner Gemfields receives approach from China's Fosun Gold that could outbid shareholder Pallinghurst's takeover offer

Francesca Washtell
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Emerald, ruby and amethyst miner Gemfields owns luxury business Faberge (Source: Getty)

Emerald, ruby and amethyst miner Gemfields has received a takeover approach from China’s Fosun Gold.

In a statement released last night, the London-listed gemstones firm said it had received an approach from and is “actively engaged” in discussions with Fosun Gold, a month after Pallinghurst put forward an offer to buy the company at its current valuation. South African private equity group Pallinghurst is Gemfields’ largest shareholder.

Read more: Gemfields loses its sparkle as production goals slip

On 31 May, Gemfields, which owns the Faberge brand, said the terms of Pallinghurst’s offer “significantly undervalue” the company.

Gemfields has now advised shareholders to take no action with regards to the Pallinghurst offer, as it believes Fosun’s approach, if confirmed, “may lead to a cash offer at a superior value” to Pallinghurst’s proposal.

Read more: Gemfields expects full-year earnings to slip after auction delays

“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,” Gemfields said in a statement.

The Pallinghurst offer remains open until 4 July, Gemfields said. Also yesterday, Pallinghurst posted its offer document for the nil-premium bid.

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