Diamondcorp cancels sale offer after disappointing bids

South African diamond miner Diamondcorp has taken itself off the market as it felt bids were “significantly” undervaluing the company.

On 18 October 2016 the group announced it was going to explore merger and sale opportunities of the group’s businesses as well as looking to secure additional funding.

However after consideration of the bids received from third parties the board found they were too “opportunistic in nature” and “significantly undervalues the company as well as unable to be completed in a sufficient period of time in light of the company's financing objectives”.

According to the board, its Lace mine still contains an estimated 9.39m carats of diamonds with in-ground value in excess of €15bn despite start-up delays. The board expects the Lace mine to reach commercial production in early 2017.

As a result the group has decided to terminate the formal sale process with immediate effect. The board will continue to look at alternative means of enhancing shareholder value.

The share price rose 9.44% to 2.43p at 1219 GMT on Monday.