Jun 21, 2017
Fabergé: Gemfields opts to accept Fosun's bid
Jun 21, 2017
British mining corporation Gemfields, owner of renowned jewellery brand Fabergé, has recommended on Tuesday that its shareholders accept the acquisition bid put forward by Chinese group Fosun, for GBP256 million (€290 million).
Fosun's bid was formalised on Tuesday, and it is in direct competition with that made by Gemfield's majority shareholder, South African investment company Pallinghurst Resources.
"Taking into account the challenges that Pallinghurst's unsolicited offer poses to the company's independence (...), the committee of independent board members is willing to recommend that shareholders accept Fosun's bid, in order to ensure a more interesting return on their investment," stated Gemfields in a press release.
The mining corporation does emphasise however that Fosun's bid "is not fair nor reasonable," but has the crucial advantage of being higher than Pallinghurst's: Fosun has in fact offered 45 cents for each Gemfield share, 18.2% more than Pallinghurst.
Gemfields is specialised in rare gems, and since the end of 2012 it is renowned as the owner of jeweller Fabergé, whose name is still associated with the famous eggs it once created for Russia's tsars.
Fosun expressed its intention of backing the expansion of Gemfields, turning it into a leading player in the rare gems industry, notably the production of emeralds and rubies, by strengthening the brand's presence in China, where demand for gems is booming.
Fosun was founded in 1992 in Shanghai, and it is a diversified group active in the healthcare and leisure industries, notably as the owner of the Club Med resort group in France.
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