Faberge'S 1898 Lilies of the Valley egg. The firm created a total of 50 imperial eggs between 1885 and 1916, the first commissioned by Tsar Alexander III as Easter gifts for his wife, the Tsarina Maria Feodorovna. (AFP)
Johannesburg - Shares of Pallinghurst Resources [JSE:PGL]
gained on Wednesday as the mining investment company said it will sell a stake in Faberge to coloured gems miner Gemfields.
The deal values Faberge, famous for its Tsarist-era jewelled eggs, at about $142m. Faberge is famous for the success of the 50 jewelled eggs commissioned by the Imperial Russian family from 1885 through to 1916.
Pallinghurst, which is headed by a former BHP Billiton executive who was developing a coloured gemstone business under the brand, will remain a 49.3% shareholder.
Pallinghurst shares were trading 1.4% higher at R2.15.
The stock has lost nearly a third of its value this year as the economic crisis chokes off demand for luxury goods such as jewellery.
Faberge, which reported revenue of $6.97m for the year ended March 31, currently sells its luxury jewellery through boutiques and retail concessions in Geneva, New York, London and Hong Kong.
Gemfields mainly mines emeralds through its Kagem mine in Zambia, but also has interests in ruby and sapphire deposits.
It will issue up to 214 million shares as consideration for the deal, which will be paid to Faberge shareholders in proportion to their holdings in Faberge.
The deal value was calculated on the basis of a 30 day volume weighted share price as of Nov. 20, Gemfields said. Its shares closed at 39 pence on Tuesday.
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