Business
Offer for Kimberley Diamond
Offer for Kimberley Diamond.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n Gem Diamonds Limited\n19 July 2007\n\nThe information contained herein is restricted and is not for publication,\nrelease or distribution, directly or indirectly, in or into the United States,\nCanada or Japan or to residents or citizens of Canada or Japan.\n\n\n\n\n\n19 July 2007\n\n\n\n RECOMMENDED CASH OFFER OF A$300M BY\n GEM DIAMONDS LIMITED\n\n FOR KIMBERLEY DIAMOND COMPANY NL\n\n\n\n\n\nIntroduction\n\n\n\nGem Diamonds Limited (LSE: GEMD) ('Gem Diamonds') and Kimberley Diamond Company\nNL (ASX: KIM/AIM: KDC) ('Kimberley') are pleased to announce that they have\nreached agreement on the terms of a recommended cash offer by Gem Diamonds for\nall the issued and to be issued share capital of Kimberley.\n\n\n\nGem Diamonds is pursuing an accelerated growth strategy both through\nacquisitions and the development of existing assets which include a portfolio of\na producing kimberlite mine an alluvial mine, numerous development projects and\na number of exploration assets with long-term prospects. Established in July\n2005, as at 18 July 2007 (being the last business day before this announcement)\nGem Diamonds had an equity market capitalisation of approximately US$1.4\nbillion.\n\n\n\nKimberley is an independent ASX listed diamond producer operating the Ellendale\nDiamond Mine in Western Australia. The Ellendale mine produces gem and near gem\nquality diamonds including Kimberley's signature stone, the rare and highly\nvaluable fancy yellow diamond.\n\n\n\nHighlights\n\n • Cash offer of A$0.70 for each Kimberley share, representing a premium of\n approximately 33% to Kimberley's closing share price on 16 July 2007.\n • Offer values Kimberley at A$300 million (circa US$263 million).\n • The offer is unanimously recommended by Kimberley's directors who, in the\n absence of a superior offer, have agreed to accept the offer in respect of\n their own holdings.\n • Gem Diamonds has entered into arrangements to acquire approximately 14.9%\n of Kimberley from a range of Kimberley shareholders at the offer price of\n A$0.70.\n • Gem Diamonds will provide Kimberley with a A$10 million short term loan\n facility for working capital purposes.\n • Gem Diamonds intends to leverage its financial strength and technical\n expertise to deliver on the full potential of Kimberley's assets.\n • Production of high value fancy diamond...