Gemfields has agreed to sell its entire interest in Fabergé to SMG Capital in a deal worth $50m (£37.3m).

The Guernsey-based mining company confirmed the deal would comprise a $45m upfront payment on completion of the sale, with the remaining $5m payable to Gemfields through quarterly royalty payments at a rate of 8% of Fabergé’s revenue.

The sale is not expected to be subject to regulatory or any other approval processes.

Gemfields said that its sale of the luxury jewellery brand, as well as the “discontinuance of other non-core projects”, had now made it a “more streamlined and focused investment proposition” with a strengthened balance sheet.

The sale also concludes Gemfields’ strategic review of Fabergé, which was first announced in December last year.

“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,” said Gemfields CEO, Sean Gilbertson.

“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.”

CEO and owner of SMG Capital, Sergei Mosunov, added: “It is a great honour for me to become the custodian of such an outstanding and globally recognised brand.

“Fabergé will continue to focus on jewellery, accessories and timepieces and we look forward immensely to providing exceptional service to Fabergé’s existing retail and wholesale customers, and to warmly welcoming new brand afficionados.

“We thank the Gemfields team for their contribution to the development of Fabergé and look forward to working closely with the brand's talented team.”

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