Gemfields shares shine as China's Fosun Gold confirms £220m takeover bid

 
Courtney Goldsmith
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Gemfields owns luxury business Faberge (Source: Getty)

Fosun Gold today confirmed it had made a takeover bid for emerald, ruby and amethyst miner Gemfields at a price of 40.85p per share, valuing the firm at £224.6m.

Shares in Gemfields, the owner of luxury brand Faberge, were trading 12.68 per cent higher this morning at 40p.

The proposed offer puts a 15.1 per cent premium to Gemfields' closing price of 35.3p on 13 June and a 10.1 per cent premium to the current implied price per share of the offer by Pallinghurst of 37.10p.

South African private equity group Pallinghurst is Gemfields' largest shareholder, and last month it put forward an offer to buy the remaining 52.91 per cent of the company it doesn't own. On May 31, Gemfields said the terms of the offer "significantly undervalue" the company.

Fosun Gold, which is part of China's Fosun International, said its offer will "provide Gemfields shareholders with a compelling cash alternative at a significant premium to the Pallinghurst offer".

"Fosun has met with the Gemfields management team and has been extremely impressed with their experience and vision for the company," the firm said.

Last night, Gemfields said it received an approach from and was "actively engaged" in discussions with Fosun Gold.

Read more: Gemfields loses its sparkle as production goals slip

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