A day after Pallinghurst shareholders who also hold stakes in Gemfields voted in favour of selling their stakes in the latter to the former, the Gemfields board bowed to the inevitable and recommended that shareholders seriously consider the Pallinghurst buyout offer.

The vote by shareholders to sell their stakes to Pallinghurst, nullified a rival buyout bid by China’s Fosun Gold.

Graham Mascall, chairman of the independent committee created to review the competing bids, said the committee still believes Pallinghurst’s bid undervalues the company and its prospects “as a leading player in the coloured gemstone sector.

Mascall noted however, “In light of Pallinghurst’s current holding and acceptances exceeding 75 percent, largely as a result of Pallinghurst concert parties accepting the offer, we are now of the view that Gemfields shareholders should seriously consider whether to accept Pallinghurst’s all-share offer. The alternative is to hold shares in what is likely to become an unquoted Gemfields.”

Gemfields shares dived when it became clear that Pallinghurst had secured the necessary support to de-list the coloured gemstone producer.