Thursday, February 14, 2013

Innopac

Innopac: Merlin Diamonds chairman and CEO Joseph Gutnick is looking to buy more shares in Innopac, even after recently boosting his stake to 10.31% from 6.87% on Feb 6. Following his initial purchase of 200m shares at $0.20/sh on Feb 5, Mr Gutnick acquired another 100m shares at $0.20/sh each in Innopac the next day. This came after Innopac announced on Jan 31 that it was making a takeover bid for Merlin Diamonds, a diamond mining and exploration company listed on the ASX. The takeover, Mr Gutnick believes, will benefit Merlin Diamonds. He says, it opens markets up in Asia and also gives extra funds if necessary because it's a cashed-up company. Says it’s good for Merlin to have a base in Asia; notes a lot of people today are buying diamonds because of investment and you find that more in China and other Asian countries. Mr Gutnick hopes to see the takeover bid reach completion in 2-3 months' time. Adds, "there's a shortage of diamond supply. The old mines are depleting and there's no new mines that have been found. Merlin will be, in the not-too-distant future, the only diamond mine in Asia, and the only diamond mine producer will be in Singapore.” Innopac shares are unchg at $0.20.

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