Gemfields Group Limited (AIM:GEM) has agreed to sell its wholly owned Fabergé Limited to SMG Capital LLC, in a deal worth $50 million.
Some $45 million is due on completion, expected on 28 August 2025, with a further $5 million to be paid through quarterly royalties (equal to 8% of Fabergé’s revenue).
Proceeds will provide working capital for operations at Montepuez Ruby Mining in Mozambique and expansion at Kagem in Zambia.
"Having initiated our strategic review of Fabergé in response to the considerable challenges Gemfields started facing in Q4 2024, today's sale marks the end of an era for us,” said chief executive Sean Gilbertson.
“Fabergé has played a key role in raising the profile of the coloured gemstones mined by Gemfields and we will certainly miss its marketing leverage and star power.
Gilbertson added: “Brands as iconic and beautiful as Fabergé do not change hands very often and we wish the team and Mr Mosunov every success as they perpetuate the unrivalled legacy of Fabergé."
Sergei Mosunov, SMG Capital owner and CEO, added: “It is a great honour for me to become the custodian of such an outstanding and globally recognised brand.
“Fabergé's unique heritage, with ties to Russia, England, France and the USA, opens significant opportunities for further strengthening its position in the global luxury market and expanding its international presence.”
At the end of 2024, Fabergé’s net assets were valued at $50.35 million, and in the financial year, it saw a $11.28 million loss after.