Takeover offer for gems firm ‘was derisory’

PRECIOUS stones miner Gemfields has rebuffed a takeover tilt from its largest shareholder, branding the £211 million bid as “derisory”.

Pallinghurst Resources tabled an offer for the Faberge owner last month as it looked to acquire the 53 per cent of the company it does not own. If accepted, the move would have handed Gemfields investors 1.91 of Pallinghurst shares for every share held.

However, the AIM-listed firm dismissed the proposed tie-up after an independent committee concluded it “significantly undervalued” the firm, its “unique asset base” and its “leading position in the coloured gemstone sector”.

Graham Mascall, chairman of the independent committee, said: “The independent committee is unanimous in concluding that the unsolicited offer from Pallinghurst is derisory and clearly undervalues the company.

“The independent committee believes the unsolicited offer has the potential to dilute Gemfields shareholders with inferior assets”.