JOHANNESBURG (miningweekly.com) – London-listed Gemfields has completed its acquisition of Fabergé from JSE-listed Pallinghurst Resources.
Pallinghurst had received 214-million new shares in Gemfields in exchange, giving it a 48% stake in the emerald producer.
“This transaction creates the world’s number one coloured gemstone company, operating at both critical ends of the value chain. Gemfields can now take its vision for coloured gemstones to the next level and Fabergé becomes the obvious consumer choice for high-end, ethically supplied coloured gemstone jewellery,” said Pallinghurst chairperson Brian Gilbertson.
Pallinghurst CE Arne Frandsen added that, although the acquisition generated an accounting loss for Pallinghurst at the current Gemfields share price, he expected the outcome to be significantly value-accretive as the new Gemfields reached its full potential.
Pallinghurst had converted a $50-million loan it provided to Fabergé between 2010 and 2012 into equity.