The acquisition, if successful, will involve Gemfields offering 214 million shares to Faberge shareholders in proportion to their holdings in jewelry brand, reported Reuters.
Gemfields chief executive Ian Harebottle said that the company sees the opportunity to acquire brand with exceptional heritage.
Investment firm Pallinghurst that operates the mining company will own 49.3% in the combined venture.
Faberge that posted revenue of $6.97m for the financial year ended 31 March 2012, sells its jewelry and accessories hrough five boutiques and retail concessions in Geneva, New York, London and Hong Kong.
The retailer plans to open two outlets each for the next ten years.
