Gem Diamonds Di Regulatory News (GEMD)

26 Nov 2007 07:01

Gem Diamonds Limited26 November 2007 26th November 2007 GEM DIAMONDS LIMITED ("Gem Diamonds" or the "Company") Gem Diamonds Australia declares offer for Kimberley unconditional Further to the announcement by Gem Diamonds on 15 November 2007 of the decisionto extend the Offer Period from the previously indicated closing date of 23November 2007 to 1 December 2007 for the cash offer for 100 per cent of theissued share capital of Kimberley Diamond Company NL ("Kimberley"), Gem DiamondsAustralia, a wholly owned subsidiary of Gem Diamonds, has elected to declare itstakeover Offer for Kimberley Diamond Company NL ("Kimberley") to beunconditional. Gem Diamonds Australia has a holding of 14.92% in Kimberley's shares and has nowreceived total acceptances in respect of 66.59% (subject to the processing ofthe institutional acceptances) representing a total relevant interest of 81.51%.Gem Diamonds Australia will immediately begin processing acceptances for paymentin line with its undertaking to pay the consideration within seven days of theOffer being declared unconditional. As the majority shareholder in Kimberley, Gem Diamonds Australia representativeswill be appointed to the Kimberley board promptly after the close of the AnnualGeneral Meeting of Kimberley shareholders to be held on 26 November 2007. GemDiamonds will accordingly obtain management control of Kimberley from 27November 2007. A management team from Gem Diamonds will be in place atKimberley 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 anddelist Kimberley from the Australian Stock Exchange and withdraw its admissionto trade on AIM. Gem Diamonds remains committed to achieving this in theshortest possible time frame. Definitions used in this announcement shall have the meanings given to them inthe shareholder circular posted 28 September 2007, except where context requiresotherwise. For further information: Gem Diamonds LimitedClifford ElphickTel: +44 203 043 0280 Gem Diamond Technical Services (Pty) LimitedStephen WetherallTel: +27 82 418 8735 Pelham PRCandice SgroiTel: +44 207 743 6376 About Gem Diamonds Gem Diamonds is a diamond mining company with a balanced portfolio of aproducing kimberlite mine, two producing alluvial mines, development projectsand long-term prospects. Established in July 2005, Gem Diamonds is pursuing anaccelerated growth strategy and aims to become one of the world's leadingdiamond companies. Gem Diamonds currently has one producing kimberlite mine,Letseng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia andMbelenge in the Democratic Republic of Congo (DRC), a kimberlite developmentproject in Botswana, two development projects in the DRC, one in the CentralAfrican Republic and an option to develop the Chiri kimberlite concession inAngola. The Company recently made an offer to Kimberley Diamond Company's shareholdersto acquire their shares in this company, which owns the Ellendale Mine in northWestern Australia, and which was approved by Gem Diamonds' shareholders at anExtraordinary General Meeting on 16 October 2007. Gem Diamonds currently has a specific focus towards higher value diamonds, asegment of the market that its management believes will deliver superior longterm returns. For further information about Gem Diamonds visit www.gemdiamonds.com. This information is provided by RNS The company news service from the London Stock Exchange