£610 million Gem Diamonds listing brings touch of romance to Charles Russell

20 February 2007

Charles Russell LLP advised JPMorgan Cazenove Limited on the London Stock Exchange listing of Gem Diamonds Limited.  Conditional dealings in Gem Diamonds’ shares commenced on Valentine’s Day, with admission and unconditional dealings occurring yesterday, 19 February.

The listing includes a £297 million placing of new and existing shares. JPMorgan Cazenove, which is acting as sponsor, broker, sole bookrunner and stabilisation manager to the offer, will also have an over-allotment option which may result in Gem Diamonds issuing a further £39 million of new ordinary shares.

Gem Diamonds was founded in 2005 by Clifford Elphick, who was previously Managing Director of E. Oppenheimer and Son.  In August 2006 a 603 carat diamond, named the Lesotho Promise, was recovered at Gem Diamonds’ Letšeng diamond mine in Lesotho. It was the 15th largest diamond ever publicly reported as being recovered and was later sold to the jewellers, Graff, for US$12.4 million.

On Admission, the market capitalisation of Gem Diamonds immediately following the Offer was approximately £610 million.

Corporate Partner Alexander Keepin led the Charles Russell team, which included Francis Rundall, Ruth Morrow and Alison Davies. 

Alexander Keepin, said, “We are delighted to be working with JPMorgan Cazenove on this listing. It is the first primary listing of ordinary shares on the London Stock Exchange in 2007 and further demonstrates our expertise in the Mining and Minerals sector.”

A team from Linklaters (Stuart Bedford, Mark Cooper and Kelly Moses) advised Gem Diamonds.

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