Petra Diamonds has put itself or parts of its business up for sale, the Africa-focussed miner said on Friday, as part of a review the company began in March after being hammered by lacklustre demand and prices for the precious gem.
The company has been in talks with its creditors to shore-up finances as the covid-19 pandemic forced it to scale back operations in a troubled diamond market.
London-listed Petra said it is seeking offers, but has received none so far and could cancel its decision at any time. Seeking potential buyers offers is a standard part of restructuring processes where the company weighs all options.
The company’s shares closed 3.3% higher at 2.17 pence on Friday before the announcement was made. The stock is down 75% for the year owing to a long list of woes.
Petra had to push back its cash flow and debt reduction targets in February after Chinese demand for diamonds took a hit, while it also works to fix its balance sheet after spending years investing in its flagship mine in South Africa.
(By Pushkala Aripaka; Editing by Shailesh Kuber)