Coloured stones specialist Gemfields (LON:GEM) this morning unveiled an £89 mln deal to acquire Fabergé, one of the most iconic names in jewellery.
The all-share transaction further advances Gemfields’ mine-to-market strategy and gives the group a big foothold in two of the most profitable segments of the industry – mining and consumer sales.
Chief executive Ian Harebottle told investors: “Fabergé is a globally recognised brand with a unique heritage, a history of excellence and a commitment to coloured gemstone products, sales and marketing, all of which is perfectly demonstrated by the magnificent Romanov necklace crafted from 2,225 emeralds and diamonds and unveiled earlier this year.
“The proposed acquisition is transformational for the company, our team and our shareholders and has the potential to deliver significant value, expanded growth and diversification opportunities to the company and our shareholders.”
To pay for the ambitious purchase, Gemfields, which owns Kagem, the world’s largest emerald mine, is issuing 214 mln new shares, or the equivalent of almost 40% of equity base.
The takeover will also see the unbundling of Rox, Gemfields’ largest shareholder, into its component investors.
As a result Brian Gilbertson’s Pallinghurst Group, will become the company’s largest individual investor with just under half the shares.
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