Gemfields announces takeover approach from rival buyer

Gemfields's board advised shareholders to take no action on an offer from Pallinghurst Resources as it announced that it had been approached by another outfit.

After the close of markets in London, the London-based supplier of coloured gemstones said its Board believed the unsolicited nil-premium bid from Pallinghurst made on 19 May "significantly undervalues" the company.

In the statement, the company also said it had received an approach and was in active discussions with Chinese consortium Fosun Gold regarding a possible competing offer for the whole company.

The Independent Committee reiterated that it strongly advised shareholders to take no action in relation to the unsolicited offer, adding that Pallinghurst had confirmed it would remain open to acceptance - at a minimum - until 4 July.

Gemfields also committed itself to providing a further update on discussions with Fosun on or before 27 June.