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Fosun makes £220m offer for Faberge owner Gemfields

Chinese conglomerate Fosun has tabled a £220 million takeover offer for Faberge owner Gemfields, upping the ante in a tussle for control of the precious stones miner.

Fosun, which also owns Wolverhampton Wanderers Football Club, said on Wednesday that it has made a 40.85 pence per share bid for Gemfields, a 15.1% premium to the Gemfields closing price on Tuesday.

Shares in AIM-listed Gemfields rose 13% to 40.1p in morning trading.

Gemfields has recently rebuffed a £211 million takeover tilt from its largest shareholder, Pallinghurst Resources, branding it "derisory".

The Shanghai-based firm said in a statement: "It is the opinion of Fosun that the possible offer would provide Gemfields shareholders with a compelling cash alternative at a significant premium to the Pallinghurst offer.

"Fosun is confident that it can integrate them into its broader global team to position Gemfields to have the scale to fully exploit the consumer growth and luxury goods trend both in China and globally that both parties expect to continue."

As well as Wolves, Fosun owns nursery brand Silver Cross and has an investment in Thomas Cook.

Gemfields mines for emeralds and amethysts in Zambia and ruby and corundum in Mozambique.

It snapped up Faberge - renowned for making lavish Easter eggs for Russia's royal family - from Pallinghurst for £89 million in January 2013.

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