JOHANNESBURG (miningweekly.com) – Its decreasing exposure to steelmaking materials, is prompting natural resources investment company Pallinghurst Resources to focus on coloured gemstones and the company plans to change its name to Gemfields Group, pending shareholder approval.
Pallinghurst’s 18.4%-owned Australian manganese subsidiary Jupiter Mines this week announced a A$240-million initial public offering (IPO) and plans to relist on the ASX to provide liquidity for its shareholders.
To achieve the “free float” reasonably required for a successful IPO, four of the large Jupiter shareholders have agreed to sell down some of their shareholding to new institutional investors on the ASX.
Pallinghurst has agreed to make available between 176.41-million and 212.03-million Jupiter shares at a placing price of A$0.40 a share. It will retain between 145.85-million and 181.46-million Jupiter shares for realisation at a later time.
This change will result in Pallinghurst holding only a minority interest in Jupiter, as well as in Sedibelo Platinum Mines, which are considered noncore to the group.
Pallinghurst CEO Arne Frandsen and FD Andrew Willis will step down as Pallinghurst executives at the end of March to become the managing partners of Pallinghurst Capital Partners (PCP) – a private equity platform that has raised and invested in excess of $1.5-billion and runs independently of Pallinghurst.
PCP will manage Pallinghurst’s financial investment in Sedibelo.
Sean Gilbertson, CEO of Pallinghurst’s Gemfields subsidiary, will succeed Frandsen as CEO, while Gemfields CFO David Lovett will succeed Willis as FD.
Pallinghurst chairperson Brian Gilbertson noted that the Jupiter IPO and consequent sell-down of a significant part of Pallinghurst’s shareholding were important steps in the group’s strategic development.
“Henceforth our shareholders will hold their interests in two essentially “pure play” vehicles – Jupiter, in manganese, and (a renamed) Pallinghurst in coloured gemstones.
“Each will focus separately and independently on developing their full values for their separate shareholders,” he said.