Gemfields to sell Faberge to SMG Capital for $50m

(Sharecast News) - Gemfields said on Monday that it has agreed to sell iconic luxury brand Fabergé to SMG Capital LLC for $50m. SMG Capital is a US-based investment company owned by tech entrepreneur and venture capital Sergei Mosunov.

Gemfields said $45m is payable on completion of the sale, which is expected to be 28 August, while the remaining $5m is payable by way of quarterly royalty payments at a rate of 8% of Fabergé's revenue.

It said the sale - which is not expected to be subject to regulatory or any other approval processes - concludes its strategic review of Fabergé, which was first announced in December 2024, then paused to facilitate the company's rights issue.

"With the sale of Fabergé and the discontinuance of other non-core projects, Gemfields is now a more streamlined and focused investment proposition with a strengthened balance sheet," it said.

Proceeds from the sale 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 in the first half of 2025.

Chief executive Sean Gilbertson said: "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.

"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. I extend our admiration and sincere thanks to the Fabergé team for their fortitude and the progress they have delivered over the years."