(Reuters) – Rockwell Diamonds Inc (RDI.TO: Quote, Profile, Research, Stock Buzz) asked its shareholders to reject an unsolicited offer made by Pala Investments Holdings Ltd to buy the company for C$85.7 million ($81.85 million).
“The offer significantly undervalues Rockwell and would deprive our shareholders of significant upside potential from the strong production growth we anticipate over the next months and years,” Chief Executive John Bristow said in a statement.
Pala is a financial investor with no experience of running a diamond company operating in South Africa, the diamond mining and exploration company said in a statement.
Rockwell Diamonds has major mining interests in South Africa.
Last week, Rockwell said Pala Investments had failed to meet the voting requirements, after the bidder claimed it was denied the right to vote at Rockwell’s annual general meeting. ($1=1.047 Canadian Dollar) (Reporting by Supantha Mukherjee in Bangalore; Editing by Anil D’Silva)