UK Gemfields to buy jewellers Faberge

Gemfields, the British gemstone mining group, said Wednesday that it was buying Faberge, famous for the jewelled eggs it made for Russia's tsars, in an all-shares deal worth $142 million (111 million euros). "Gemfields plc, the leading gemstone mining and marketing company, announces its proposed acquisition of a 100-percent interest in Faberge Limited with a view to creating a globally recognised coloured gemstone champion," a statement said. "Faberge will provide Gemfields with direct control over a high-end luxury goods platform and a global brand with an exceptional heritage." Gemfields said it planned to issue up to 214 million new ordinary shares representing approximately 39.6 percent of the enlarged issued share capital. Gemfields values Faberge "at approximately $142 million (£89 million), on the basis of a 30 day volume weighted share price as at 20 November 2012," it added. "The combination with Gemfields presents a unique platform to further develop coloured gemstone products in new and existing global markets," Faberge managing and creative director Katharina Flohr said in the statement. It added: "Gemfields' leading market position is in part due to its ability to supply ethically produced coloured gemstones on a large scale but is also due to its extensive marketing initiatives, both of which are certain to be developed further by Faberge, to the benefit of both companies and the sector as a whole."