Maravi

Gemfields, Rox Conduit takeover talks fail

Gemfields, Rox Conduit takeover talks fail
Written by Nchima Nchito Jr
Tuesday, July 21, 2009 6:21:57 PM

NEGOTIATIONS between coloured gemstone producer Gemfields and Rox Conduit (RoxC) regarding a possible takeover have collapsed.
Gemfields is one of the world's leading coloured gemstone companies.

With a strong focus on Zambian emeralds, Gemfields mines, processes and markets both rough and polished gemstones internationally. Kagem, the flagship mine, sold US $12.6 million worth of emerald and beryl in 2007. The mine has consistently produced some of the finest Zambian emeralds since 1984.

RoxC was in negotiations with Gemfields with the intention of taking over the operations of the company. According to a statement from Gemfields, the decision to drop negotiations was reached following extensive consultations with all stakeholders.

"Following careful consideration of the indicative terms of the possible offer and consultation with Gemfields' major independent shareholders, the preliminary discussions between RoxC and the committee in respect of the possible offer have been discontinued," Gemfields stated. "The committee has notified RoxC of that fact and, at this point, the committee does not have any information as to whether RoxC will pursue its interest in the possible offer on the same or revised indicative terms, therefore the company remains in an offer period for the purpose of the takeover code."

In June, Gemfields had revealed the offer by RoxC for a possible takeover bid. Gemfields, which owns Kagem emerald mine in Zambia, forms part of Pallinghurst Resources.

Labels: EMERALDS, GEMFIELDS MINES, GEMSTONES, ROX CONDUIT

posted by MrK @ 5:16 PM