Business
Recommended Cash Offer
Recommended Cash Offer.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n Gem Diamonds Limited\n11 April 2007\n\n\nNot for release, publication or distribution, in whole or in part, in, into or\nfrom Australia,New Zealand, Canada or Japan or any Restricted Jurisdiction\n\nEmbargoed until 7.00 a.m. (London time) on 11 April 2007\n\n11 April 2007\n\n Recommended cash offer\n\n by Gem Diamonds Limited\n\n for\n\n BDI Mining Corp\n\nSummary\n\nGem Diamonds Limited (LSE: GEMD) ('Gem Diamonds') and BDI Mining Corp (AIM: BMG)\n('BDI Mining') are pleased to announce today that they have reached agreement on\nthe terms of a recommended cash offer by Gem Diamonds for all the issued and to\nbe issued share capital of BDI Mining.\n\nOffer Highlights\n\n• Cash offer of 37 pence for each BDI Mining Share\n\n• Offer provides BDI Mining Shareholders with an 8.8 per cent. premium to BDI\n Mining's closing share price on 10 April 2007 and values all BDI Mining's \n issued and to be issued share capital at approximately £41.9 million\n\n• Offer unanimously recommended by the BDI Mining Directors\n\n• Irrevocable undertakings and letters of intent to accept\n the Offer received in respect of, in aggregate, 61,842,657 BDI Mining Shares,\n representing approximately 59.6 per cent. of BDI Mining's issued share capital,\n including from all the BDI Mining Directors\n\n• Transaction adds to Gem Diamonds' portfolio an 80 per cent. holding in Cempaka,\n a high gem quality producing alluvial diamond mine in\n Indonesia, with potential for significant production increase\n\n• Core management of BDI Mining to join Gem Diamonds and to\n continue the development of the Cempaka mine\n\n• Gem Diamonds will review strategic options for BDI\n Mining's Woodlark Gold Project\n\n\nCommenting on the Offer, Clifford Elphick, Chairman and CEO of Gem Diamonds,\nsaid:\n\n'We are pleased to have reached agreement with the BDI Mining Directors and that\nthey have unanimously recommended Gem Diamonds' Offer to their Shareholders. We\nbelieve that Gem Diamonds' expertise in alluvial diamond mining, together with\nour intention to undertake additional investment in the Cempaka mine, will\nsignificantly enhance the operational performance of Cempaka.\n\nCempaka provides Gem Diamonds with an opportunity to diversify geographically\nwhilst retaining its focus on high quality diamond production and positions Gem\nDiamonds as a company ...