Provide new information on the results of its negotiations

Pallinghurst Resources could be dragged into the competition between buyers for control of Gemfields after this UK-registered company said that it was aggressively looking for a "possible competitive offer."

On the day Pallinghurst presented its offer to Gemfields, the company that produces and sells colored diamonds said that Fosun Gold, a subsidiary of Fosun International, registered in Hong Kong, applied to it. As reported by Gemfields, she held "active negotiations with Fosun Gold about a possible competing offer for the entire issued and upcoming share capital of the company."

Gemfields said that this appeal became possible after the involvement of its consultants in order to "... study ways to create maximum value for shareholders and protect the interests of minority shareholders." An independent committee set up by Gemfields to evaluate Pallinghurst's takeover offer, which includes its chief executive, Ian Harebottle, said that negotiations with Fosun Gold "... may lead to a purchase offer for cash at a higher cost compared to With an undesirable offer from Pallinghurst. "

Fosun Gold until August 5 should provide a competing offer of the company Gemfields.

In a statement made today, Pallinghurst reported that the closing of the first transaction on its proposal is scheduled for July 4. She began the fight in a tender for shares, which she no longer had in Gemfields on May 19 at a ratio of 1.91 new shares of Pallinghurst for each share of Gemfields. Twelve days later, an independent committee of Gemfields called this proposal "ludicrous."

"The undesirable proposal seems to be caused by the proposed restructuring of Pallinghurst, whose goal is to preserve the self-interested interests of investment management at Pallinghurst through independent investors from Gemfields," the committee said. He added that Pallinghurst was illiquid and put minority shareholders in Gemfields under attack due to more volatile goods, for example, iron ore, which Pallinghurst invests.

Pallinghurst assumes that the stock price of Gemfields has been low for many years, and the company, which already owns 47% of Gemfields, is tired of financing such low economic efficiency. The shares of Gemfields, which fell by almost 10% immediately after the announcement of Pallinghurst's plans for acquisitions, fell sharply today in London.

The company's capitalization is £ 194 million on the London Stock Exchange, compared to an implied offer of Pallinghurst of £ 118 million ($ 150 million).

"Gemfields has been in Pallinghurst's records for 15 years, and we served as a bank," said Arné Frandsen, CEO of Pallinghurst Resources. - We do not get a return. It costs us half of our value - the price of Pallinghurst shares depends on Gemfields, and this is the main reason for the fall in the prices of Pallinghurst shares. We can not accept this with my shareholders, "he said.

The independent committee of Gemfields said today that shareholders should not take action on the proposal of Pallinghurst and that it will provide new information on the results of its negotiations with Fosun Gold on June 27 or earlier. Founded in 1992, Fosun International is an industrial and investment conglomerate, headquartered in Shanghai.

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