TanzaniteOne bid stymied
JUST A QUICK NOTE to record that the ploy by TanzaniteOne’s board to block the bid from Pallinghurst associate Gemfields, which I discussed last week, succeeded. The scheme in effect places control of the company in the hands of the board.
Gemfields had tendered for 30,8m shares – which, with the 13,7% it already held, would have taken its stake to 50,1% – and received offers for 39,8m, which would have taken it well above 60%, but had to drop the tender. That shows what shareholders wanted – yet the board claims it was acting in the company’s best interests.
What time-serving – but job-saving – hypocrisy.
Now just watch the TanzaniteOne share price collapse as – like Lonmin during the Xstrata bid proposal – it was only protected against general market malaise by the bid factor. It’s already back at 28p (against a pre-bid 25,5p) against Gemfields’ offer of 42,75p.