Maputo, 12 Aug (AIM) –The London-based mining company Gemfields has signed an agreement to sell its entire interest in the wholly-owned luxury brand Fabergé to the US based company SMG Capital for 50 million dollars.
Gemfields owns 75 per cent of Montepuez Ruby Mining (MRM), the main ruby mining company in Mozambique.
According to the publication “Engineering News”, of that sum, 45 million dollars is payable to Gemfields by SMG on completion of the sale, expected on August 28, while the remaining five million dollars is payable by way of quarterly royalty payments at a rate of eight per cent of Fabergé’s revenue.
“The sale proceeds will provide additional working capital while the new processing plant at Montepuez Ruby Mining, in Mozambique, is operationalised, and mining at Kagem, in Zambia, is progressively expanded, having been suspended during the first half of this year”, reads the report.
“Having initiated our strategic review of Fabergé in response to the considerable challenges Gemfields started facing in quarter four 2024, today’s sale marks the end of an era for us. 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,” said Gemfields group CEO Sean Gilbertson, cited in the document.
Fabergé sells jewellery and objets d’art through its website, boutiques and via international wholesale partners. The sale is not expected to be subject to regulatory or any other approval processes.
With the sale of Fabergé and the discontinuance of other “noncore” projects, Gemfields claims that it is now “a more streamlined and focused investment proposition with a strengthened balance sheet”.
SMG Capital is a US-based investment company entirely owned, both legally and beneficially, by Sergei Mosunov, a tech entrepreneur and venture capitalist.
“It is a great honour for me to become the custodian of such an outstanding and globally recognised brand”, Mosunov declared. “Fabergé’s unique heritage, with ties to Russia, England, France and the US, opens significant opportunities for further strengthening its position in the global luxury market and expanding its international presence”.
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