GEM DIAMONDS AUSTRALIA DECLARES OFFER FOR KIMBERLEY UNCONDITIONALBack
26 Nov 2007
Further to the announcement by Gem Diamonds on 15 November 2007 of the decision to extend the Offer Period from the previously indicated closing date of 23 November 2007 to 1 December 2007 for the cash offer for 100 per cent of the issued share capital of Kimberley Diamond Company NL ("Kimberley"), Gem Diamonds Australia, a wholly owned subsidiary of Gem Diamonds, has elected to declare its takeover Offer for Kimberley Diamond Company NL ("Kimberley") to be unconditional.
Gem Diamonds Australia has a holding of 14.92% in Kimberley's shares and has now received total acceptances in respect of 66.59% (subject to the processing of the institutional acceptances) representing a total relevant interest of 81.51%. Gem Diamonds Australia will immediately begin processing acceptances for payment in line with its undertaking to pay the consieration within seven days of the Offer being declared unconditional.
As the majority shareholder in Kimberley, Gem Diamonds Australia representatives will be appointed to the Kimberley board promptly after the close of the Annual General Meeting of Kimberley shareholders to be held on 26 November 2007. Gem Diamonds will accordingly obtain management control of Kimberley from 27 November 2007. A management team from Gem Diamonds will be in place at Kimberley from this date.
Once Gem Diamonds Australia has acquired 90% of the issued shares in Kimberley, it intends to compulsorily acquire the remaining 10% of the shares in issue and delist Kimberley from the Australian Stock Exchange and withdraw its admission to trade on AIM. Gem Diamonds remains committed to achieving this in the shortest possible time frame.
Definitions used in this announcement shall have the meanings given to them in the shareholder circular posted 28 September 200, except where context requires otherwise.
For further information:
Gem Diamonds Limited
Tel: +44 203 043 0280
Gem Diamond Technical Services (Pty) Limited
Tel: +27 82 418 8735
Tel: +44 207 743 6376
About Gem Diamonds:
Gem Diamonds is a diamond mining company with a balanced portfolio of a producing kimberlite mine, two producing alluvial mines, development projects and long?term prospects. Established in July 2005, Gem Diamonds is pursuing an accelerated growth strategy and aims to become one of the world?s leading diamond companies. Gem Diamonds currently has one producing kimberlite mine, Letšeng, in Lesotho, two producing alluvial mines ? Cempaka in Indonesia and Mbelenge in the Democratic Republic of Congo (DRC), a kimberlite development project in Botswana, two development projects in the DRC, one in the Central African Republic and an option to develop the Chiri kimberlite concession in Angola.
The Company recently made an offer to Kimberley Diamond Company's shareholders to acquire their shares in this company, which owns the Ellendale Mine in north Western Australia, and which was approved by Gem Diamonds' shareholders at an Extraordinary General Meeting on 16 October 2007.
Gem Diamonds currently has a specific focus towards higher value diamonds, a segment of the market that its management believes will deliver superior long term returns.
For further information about Gem Diamonds visit www.gemdiamonds.com.