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The Rose Trellis Egg, designed for Faberge by Henrik Wigstrom, and presented by Tsar Nicholas II to his wife Alexandra Fedorovna, to commemorate the birth of their daughter three years earlier. The egg contained as a surprise a diamond necklace.



  Colored stone miner to take control of Faberge jewelry brand


December 14, 2012


The British-based colored gemstones mining company Gemfields continues its relentless march toward market dominance with the purchase in December of the legendary luxury jeweler Faberge, which possibly is best known for its crafting of 50 bejeweled Easter eggs commissioned by the Imperial Russian family from 1885 through to 1916.

Faberge shareholders will be paid in stock, with Gemfields issuing up to 214 million shares to purchase the company, which is valued at $142 million. What will result is an integrated corporation that mines colored stones and uses the Faberge brand to promote their use.

The largest shareholder in both Gemfields and Faberge is the Pallinghurst investment company, which is controlled by BHP Billiton head Brian Gilbertson. With the expected approval of the deal by independent shareholders and the issue of shares by Gemfields next month, Pallinghurst will own 49.3 percent of the combined group.

The House of Faberge was founded in 1842 in St. Petersburg by Gustav Faberge, and became the jeweler of choice to the Russian royal family. In 1918, following the Russian Revolution, it was nationalized by the Bolsheviks. However, the founding family relaunched the brand as Faberge et Cie in Paris.

The Faberge name was sold and resold several times, and used to launch clothing lines, the men's cologne Brut, the perfume Babe, hair products, and even films. But when Pallinghurst bought the name in 2007, it reintroduced Faberge as a high-end jewelry producer.

The newly reconstituted Faberge Limited released its first collection of exclusive jewelry in 2009, and even launched two collections of egg pendants two years later. It opened its own store in Grafton Street in London's Mayfair neighborhood in 2011, and the following year followed up with stores in Hong Kong and New York.

Despite its own jewelry line, Gemfields will continue to sell loose rough colored gemstones at auction. The company now will employ 1,150 people in five countries.

"Gemfields has made excellent strides in its colored gemstones mining and marketing initiatives, which will remain core to our business," said Ian Harebottle, Gemfields' CEO. "However, we are confident that we will be able to put the new and exciting opportunities and natural synergies, that a globally recognized brand of Faberge's standing is able to offer us, to good use.

"We look forward to moving into what is a considerably larger and grander market space than that which was previously available to the Gemfields brand," he added.

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