Faberge shareholders agree takeover by UK-based Gemfields

Faberge egg in front of Coutts on the Strand, London

The shareholders of Cayman Islands-based luxury jeweller Faberge Limited have backed the company’s proposed acquisition by UK coloured gemstones miner Gemfields Plc (LON:GEM), the buyer said.

The deal was agreed on 21 November with Faberge’s owner, UK-based private equity firm Pallinghurst Resources Ltd (JNB:PGL). Under its terms, Gemfields will issue up to 214m new shares, which will be allocated to Faberge’s shareholders in proportion to their holdings in the company. Based on the 30-day volume weighted share price as at 20 November 2012, the deal values the jewellery maker at around USD142m (EUR107.6m).

Pallinghurst, which also controls Gemfields together with partners in investor group Rox Limited, will own 49.5% of the combined group following admission of the new shares. After the planned unbundling of Rox, which currently holds 63% of Gemfields, Pallinghurst will become the single biggest shareholder of the UK gemstones miner with 48%.

The acquisition, which is in line with the company’s strategy to become a global coloured gemstone leader, will enable it to boost its international presence and gain access to the high margin luxury sector, Gemfields said previously. The combined entity, with some 1,150 employees, will have operations in the UK, United States, Switzerland, Zambia, Mozambique, India and China.

The completion of the deal, which is subject to regulatory approval, among other customary closing conditions, is seen to occur at the beginning of the first quarter of 2013.

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