UK-based gemstone miner Gemfields is to acquire 100 per cent of jeweller Fabergé in an all-shares deal worth £89 million (US$142 million).

Fabergé is a purveyor of luxury jewellery with boutiques and retail concessions in Geneva, New York, London and Hong Kong. The jeweller, known for the jewelled eggs it made for Russia’s tsars, is owned by Pallinghurst Group.

Under the proposed takeover, Gemfields will issue of up to 214 million new ordinary shares representing approximately 39.6 per cent of the enlarged issued share capital.

The proposed acquisition creates a platform for Gemfields to further increase its market share within the coloured gemstone sector, while gaining exposure to luxury sector multiples and greater influence over product positioning and consumer awareness.

“The proposed acquisition of Fabergé further enhances our potential to be recognised as the leading coloured gemstone company. It provides exposure to the two most profitable segments in the gemstones value chain, namely mining and consumer sales,” said Gemfields CEO Ian Harebottle.

“The merger with Gemfields presents a unique platform to further develop coloured gemstone products in new and existing global markets. Both businesses are fortunate to share the same vision and to recognise the exciting long term opportunity that exists within the combination of the coloured gemstone and luxury goods markets,” said Fabergé MD and creative director Katharina Flohr.

GB