One of South Africa's richest men has amassed a 12.7% stake in Gemfields, taking the shares of coloured gemstones specialist who owns the jewellery brand Fabergé to their highest level in addition to three years.

The stake by billionaire businessman Desmond Sacco, owner of mining company Assore, comes after a difficult year for Gemfields, which operates the world's largest emerald and ruby mines, respectively, in Zambia and Mozambique

Gemfields, which is listed in London and Johannesburg, reported last week a return to profits for the first six months of 2021 due to rising prices and demand for rubies and emeralds.

Sean Gilbertson, managing director of Gemfields, said he spoke with Sacco's son Patrick, who is responsible for a new branch of Assore incorporated in the UK which has acquired the stake.

"It would appear that they have ambitions to expand internationally," Gilbertson said. "It is a smart and well-known mining company and we look forward to forming a good relationship."

Assore declined to comment. Sacco's net worth in 2018 was around $ 1.1 billion, according to Forbes.

After 70 years on the Johannesburg Stock Exchange, the Sacco family privatised Assore last year. The company's main asset is Assmang, a manganese mining company that it jointly owns with African Rainbow Minerals. It also owns a stake in chromium and a 25 percent stake in lithium company Ironridge.

"If they [Assore] are trying to expand, it's easier to do so out of the public eye, "said Yuen Low, analyst at Liberum, a London-based brokerage firm. "They must see the value in Gemfields." The company currently has a market value of $ 233 million.

Assore began to increase its stake this month, initially purchasing 5% of Gemfields from Fidelity International. More buys followed and he said a 12.7 percent turnout last week.

Also read: Gemfields records strong six-month performance

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