Gemfields Adjusts Offer for Tanzanite One

Gemfields Resources, through its parent company, Pallinghurst Resources, has adjusted its original bid for Tanzanite One that values the company at about 33 million British pounds sterling ($53.3 million).

The new bid, which was announced Tuesday, is lower than the approximate $59 million that Gemfields initially offered for the Tanzanite mining and marketing company on Sept. 12.

Gemfields said it lowered its offer from 45 pence per share to 42.7 pence per share based on the interim dividend for shareholders that Tanzanite One announced on Sept. 22.

Tanzanite One advised its shareholders to take no immediate action, the Financial Times reports. Previously it rebuked Gemfields takeover attempt, saying its offer undervalued the company.

Through the London-based Gemfields Resources, Pallinghurst, based in South Africa, is attempting to buy up various assets in the fragmented colored-gemstone industry and create consolidated mine-to-market programs for emeralds, tanzanite, and other gems what De Beers is done to the diamond business.

Gemfields owns emerald mines in Zambia and Madagascar, as well as a cutting and polishing facility in India.

Pallinghurst is headed by Brian Gilbertson, former chief executive of BHP Billiton. His son, Sean is chief executive of Gemfields.

Pallinghurst also owns Fabergé and Gemfields owns the rights to market its most valuable emeralds, and perhaps other gems, under the Fabergé name.