Gemfields ends offer to T1

It had intended to be a 52 percent stakeholder in the company
Gemfields ends offer to T1

Gemfields Resources Plc has ended its offer of buying shares in TanzaniteOne (T1), this week. The company is reportedly optimistic of finding more such takeover opportunities in the future.

The offer by Gemfields was first put forth in September, valuing T1 at approximately $59 million, on the condition that Gemfields be offered at least 50.1 percent in T1’s issued share capital. Upon the successful completion of this offer Gemfields would hold 52 percent in T1, combining the newly purchased shares (50.1 percent) with its existing stake in T1.

T1 had replied to this offer in late October by issuing 83.74 million ‘B’ stock shares, representing 50.2 percent in its enlarged share capital. It had adopted this strategy to ensure that the benefit of any such offer accrues to all the issued shares.

With Gemfields opting to end its offer, T1 informed that the T1 Board would formally intimate its shareholders in a letter, about the introduction of an ‘appropriate takeover protection into its bye-laws’ as a safeguard that if any such offer is made for control of the company, it all T1 shareholders would be treated alike.

T1 has outlined a growth plan, by increasing production to over 3.1 million carats of tanzanite by 2011, along with gemstone diversification.

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