Gemfields buys luxury jeweller Faberge
LONDON, November 25, 2012 – Gemfields plans to buy luxury jeweller Faberge, renowned for its jewelled eggs, from one of the gem miner’s own shareholders.
The all-share deal, if approved by minority investors, will create an integrated company that mines coloured stones and uses the Faberge brand to promote their use in jewellery.
The deal was valued at around $142 million.
Controlled by Pallinghurst investment company, Faberge was relaunched in 2009, with its first collection since 1917.
Gemfields will issue up to 214 million shares as consideration for the deal, which will be paid to Faberge shareholders in proportion to their holdings in Faberge.
Pallinghurst – which controls Gemfields alongside partners in investor grouping Rox, and also controls Faberge – will own 49.3 percent of the combined group. Rox, which currently has a combined 63 percent in Gemfields, will disband.
Independent shareholders will vote on the deal and the necessary issue of shares by Gemfields next month.
