Back to Gemfields for Pallinghurst as Jupiter lists

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Back to Gemfields for Pallinghurst as Jupiter lists

Published Date: 2018-03-22 | Source: Stephen Gunnion | Author: Stephen Gunnion

Back to Gemfields for Pallinghurst as Jupiter lists

The group plans to offload its stakes in Jupiter and Sedibelo Platinum and change its name to Gemfields

Pallinghurst Resources says it plans to focus its attention on coloured gemstones following an announcement that Jupiter plans to list on the Australian Stock Exchange (ASX).

Pallinghurst is one of four large shareholders in Jupiter, owner of the Tshipi manganese mine in the Northern Cape, who have agreed to sell down their stakes to new institutional shareholders in order to boost liquidity once its floats on the ASX. It will release between 176-million and 212-million shares at a placing price of A$0.40 a share, which will result in a cash inflow of between A$80.6 million and A$84.8 million. It has agreed to restrict the sales of its remaining shares in Jupiter for up to 20 months.

Pallinghurst has already sold two tranches of shares back to Jupiter since December at $0.29 per share and says the IPO price is significantly higher than the most recent valuation of the company. It says it will announce its plans for the cash it receives following the IPO.

That will leave Pallinghurst with 100% of Gemfields, the gemstone miner it took control of last year, and minority holdings in Jupiter and Sedibelo Platinum Mines. It said the two minority interests would not be core to the group and it would sell them when the time was right. It plans to change its name to Gemfields to reflect its new strategy as a miner of precious stones.

As a result of the changes, CEO Arne Frandsen will step down and be replaced by Gemfields CEO Sean Gilbertson, while finance director Andrew Willis will be replaced by Gemfields CFO David Lovett. Frandsen and Willis will then take up positions as managing partners of Pallinghurst Capital Partners (PCP), the private equity platform they helped set up in 2006, which will be run independently of Pallinghurst. Brian Gilbertson, who remains non-executive chairman of Pallinghurst, will become non-executive chair of PCP, which will manage the group's financial investment in Sedibelo to maximise the exit value for the benefit of Pallinghurst's shareholders.

"The Jupiter IPO and consequent sell-down of a significant part of Pallinghurst's shareholding are important steps in our strategic development," Gilbertson said in a statement. "Henceforth our shareholders will hold their interests in two essentially "Pure Play" vehicles - Jupiter in manganese, and (a re-named) Pallinghurst in coloured gemstones. Each will focus separately and independently on developing their full values for their separate shareholders."

Pallinghurst's shares ended trade 0.3% lower at R3.19 on Tuesday.



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