Special div as Gemfields sells Jupiter


Special div as Gemfields sells Jupiter

Published Date: 2019-04-16 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Special div as Gemfields sells Jupiter

The group has sold its remaining stake in ASX-listed Jupiter as it focuses on its coloured gemstone operations.

Gemfields has agreed to sell its remaining stake in Australia-listed Jupiter to AMCI Euro Holdings for A$44.2 million as it focuses on its coloured gemstone operations. That's equal to about $31.6 million or R445 million at current exchange rates. It plans to pay $24.7 million of that out as a special dividend.

The sale will be completed in two tranches, with close to 73 million shares sold on 3 June for A$22.1 million and the balance on 1 November. It's conditional on the expiry of certain lock-in restrictions that were entered into when Jupiter listed on the Australian Securities Exchange (ASX) last year. Gemfields' 145.8 million Jupiter shares were worth about A$46.7 million at last Friday's closing share price of 32c. It said the selling price was about 2.4% below the 30-day volume weighted average price of the company's stock. It also retains the right to Jupiter's most recent dividend, which is payable next month and is worth A$3.65 million. It released the majority of its Jupiter holding into last year's Initial Public Offering on the ASX.

Last month, the company said it was exploring a listing of its shares in London as it aims to become the "De Beers of coloured gemstones". It changed its name from Pallinghurst to reflect the new business after its acquisition of Gemfields plc and has developed a mine-to-market model through its mining of coloured gemstones which feeds into its luxury Fabergé business.

The special dividend is conditional upon the prior receipt of the Jupiter dividend and the first tranche of the sale proceeds, as well as the SA Reserve Bank's approval. It expects to formally declare the dividend in early June.

Its shares rose as much as 8.6% before closing unchanged at 175c.

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