Pallinghurst Bid Undervalues Gemfields, Board Tells Shareholders

A Story by gemkonnect

Graham Mascall, chairman of the board of directors of coloured gemstone producer Gemfields plc, has written to all the company’s

Graham Mascall, chairman of the board of directors of coloured gemstone producer Gemfields plc, has written to all the company’s shareholders saying that the terms of offer for the unsolicited buyout of the entire company by the majority shareholder Pallinghurst Resources Limited, significantly undervalues the company, its unique asset base and its leading position in the coloured gemstone sector.

The Gemfields chairman said that the board therefore continues to strongly advise the company’s shareholders to take no action at this time.

The board issued the letter after having received feedback on the offer from independent shareholders of the company and further having sought an opinion from its advisers.

Angry minority shareholders had accused Pallinghurst Resources of undervaluing the company in the wake of the unsolicited takeover bid on May 19 last.

Pallinghurst Resources reported a $32.9 million loss for the first six months of last year, despite a shining commercial performance by Gemfields.

https://www.gemkonnect.com/news/pallinghurst-bid-undervalues-gemfields-board-tells-shareholders