In this time of corporate consolidation there is always those who are brave enough to grow and develop, strengthening their position rather than cutting back and becoming more vulnerable to market forces. Graff, one o f the leading diamond dealers in the UK this week made a significant investment (4.5%) in Gem Mining. The following story was reported in MiningWeekly
Graff bought 2,824,744 shares in Gem Diamonds as an investment and confirmed that he did not intend to make a formal offer for the company, the report said.
“Graff intends to be a long-term investor,” Gem Diamonds said in a statement distributed by London’s Regulatory News Service.
In 2006, Graff acquired the 603 carat Lesotho Promise, which is the world’s fifteenth-largest diamond ever found; and in 2007, he bought the 493 carat Letseng Legacy, the world’s eighteenth-largest diamond ever mined. Both diamonds came from Gem Diamonds’ Letseng mine, in Lesotho.
“Gem Diamonds is an excellent company that produces some of the finest diamonds in the world today. Our investment in the company reflects our confidence in its fundamental value and in the management’s ability to realize this value for shareholders from its asset base. We are also very much looking forward to talking with the management of Gem Diamonds to explore ways of working together fruitfully,” said Graff