Shares in gemstones miner Gemfields rose 2.3 per cent Friday after its largest shareholder made a £111.9m bid for the remaining shares of the company.
South Africa-based private equity company Pallinghurst said its offer values the shares at 38.5 pence, compared to Thursday’s close of 38.125 pence.
Shares in Gemfields, a leading producer of emeralds and rubies, rose 2.3 per cent to 39 pence.
Investors would receive 1.91 Pallinghurst shares for each share of Gemfields they hold, Pallinghurst said. Shares in Pallinghurst rose 2.41 per cent on the Johannesburg Stock Exchange to 34 cents.
Pallinghurst, run by former BHP Billiton boss Brian Gilbertson, owns 47.1 per cent of the shares of Gemfields, following its sale to the company of the Faberge brand in January 2013.
Pallinghurst said it had received commitments from other shareholders to accept the offer. That meant 75 per cent of the total shareholders were in agreement.
“Accordingly, as at the date of this announcement, the offer has become unconditional as to acceptances,” it said.
Pallinghurst says it plans to delist Gemfields from AIM and transform from a private equity fund into a mining company.
“The result will be a renewed Pallinghurst with a simplified operating model and an in-house management team,” it said. “The value of the underlying assets will be more clearly demonstrable with clearer earnings and operating metrics that can be benchmarked against industry peers.”