The Board of Directors of Gems TV Holdings, which operates a jewelry-based shopping channel, announced it has entered a conditional sale and purchase agreement with Japanese company Miyuki Co. Ltd (MCL), for its London affiliate GemsLondon Ltd.

According to a Gems TV press release, the deal will amount to ¥26 million.

"With the cessation of the business operations of the Company's subsidiary, Gems TV (USA) Limited as well as the proposed sale of the entire issued share capital of Gems TV (UK) Limited, the Company and its subsidiaries no longer enjoy the economies of scale to support its Japan operations, which has not been profitable to date," said a company press release.



"If the Proposed Japan Sale does not complete, it is likely the Company will have to shut down its business operations in Japan and liquidate the assets of Gems Japan accordingly."

MCL, added the statement, has agreed to purchase the entire issued and paid-up share capital of Gems Japan for a consideration of ¥26 million – in cash.

Gems TV stands to note a $3 million loss upon the completion of the sale.