Nov 21, 2012
Miner Gemfields to buy Fabergé
Nov 21, 2012
LONDON - Coloured gems miner Gemfields has agreed to buy Fabergé, famous for its Tsarist-era jewelled eggs, in a deal valuing the luxury jeweller at about $142 million.
Fabergé is being sold by Pallinghurst Resources, a mining investment company. Pallinghurst, which is headed by a former BHP Billiton executive who was developing a coloured gemstone business under the brand, will remain a 49.3 percent shareholder.
Fabergé is famous for the success of the 50 jewelled eggs commissioned by the Imperial Russian family from 1885 through to 1916.
The company, which reported revenue of $6.97 million for the year ended March 31, currently sells its luxury jewellery through boutiques and retail concessions in Geneva, New York, London and Hong Kong.
Gemfields mainly mines emeralds through its Kagem mine in Zambia, but also has interests in ruby and sapphire deposits.
It will issue up to 214 million shares as consideration for the deal, which will be paid to Fabergé shareholders in proportion to their holdings in Fabergé.
The deal value was calculated on the basis of a 30 day volume weighted share price as of Nov. 20, Gemfields said. Its shares closed at 39 pence on Tuesday.
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