Gemfields PLC (AIM: GEM) confirmed it is in preliminary talks with Rox Conduit Ltd, the parent company of Rox Ltd (Rox) and related party of Pallinghurst Resources Ltd, which may or may not lead to a firm cash offer being made for the shares in Gemfields not currently owned by Rox or Pallinghurst at 8 pence each.
Rox holds 208.1 million Gemfields shares and Pallinghurst owns 12.8 million, which together represents an approximately 68.2 percent Gemfields stake.
The stock was trading up 1.7 percent at midday, off previous highs it reached after the news broke.
There can be no certainty that an offer will be made nor as to the terms or price on which any offer might be made, Gemfields said. A further announcement will be made in due course.