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"Botswana has between nine and 12 months to exercise its right before the transaction is completed.
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The government of Botswana is considering exercising its pre-emptive rights to part of the Oppenheimer family’s stake in diamond miner De Beers, which is to be sold to Anglo American, it announced on Friday.
Botswana’s ministry of minerals, energy and water resources said in a statement that it would explore its option to participate in the transaction and increase its own interest in De Beers on a pro rata basis to 25%, after hearing of the deal stuck between Anglo American and CHL Group, an investment vehicle for the Oppenheimer family.
In terms of the deal, Anglo American will acquire the Oppenheimers’ 40% interest in DB Investments SA and De Beers SA for $5,1bn, increasing its current 45% shareholding in De Beers to 85%.
Under the proposed transaction, Anglo American said earlier, should Botswana exercise its pre-emptive rights in full, Anglo American would acquire an incremental 30% interest in De Beers, taking its total interest to 75%, and the consideration payable by Anglo American to CHL Group would be reduced proportionately.
Botswana has between nine and 12 months to exercise its right before the transaction is completed.
Ponatshego Kedikilwe, Botswana’s minister of minerals, energy and water resources, said the diamond industry was a major contributor to his country’s economy and the government was grateful to the Oppenheimer family for their vision and contribution to the diamond industry and Botswana.
"(We) will proudly take forward that legacy with Anglo American," said Mr Kedikilwe. "We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture."
The government owns 50% of Debswana, the world’s largest diamond producer by value. It is the country’s largest non-government employer and produces more than 70% of its export earnings, 30% of its gross domestic product and 50% of government revenue, according to De Beers.
In 2008, De Beers and Botswana’s government established Diamond Trading Company Botswana, another joint venture that sorts and values Debswana’s production. It also sells aggregated diamonds to local manufacturers.
Anglo’s shares rose by 2,28% to trade at R302,49 in late-afternoon trade on Friday.
Botswana’s ministry of minerals, energy and water resources said in a statement that it would explore its option to participate in the transaction and increase its own interest in De Beers on a pro rata basis to 25%, after hearing of the deal stuck between Anglo American and CHL Group, an investment vehicle for the Oppenheimer family.
In terms of the deal, Anglo American will acquire the Oppenheimers’ 40% interest in DB Investments SA and De Beers SA for $5,1bn, increasing its current 45% shareholding in De Beers to 85%.
Under the proposed transaction, Anglo American said earlier, should Botswana exercise its pre-emptive rights in full, Anglo American would acquire an incremental 30% interest in De Beers, taking its total interest to 75%, and the consideration payable by Anglo American to CHL Group would be reduced proportionately.
Botswana has between nine and 12 months to exercise its right before the transaction is completed.
Ponatshego Kedikilwe, Botswana’s minister of minerals, energy and water resources, said the diamond industry was a major contributor to his country’s economy and the government was grateful to the Oppenheimer family for their vision and contribution to the diamond industry and Botswana.
"(We) will proudly take forward that legacy with Anglo American," said Mr Kedikilwe. "We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture."
The government owns 50% of Debswana, the world’s largest diamond producer by value. It is the country’s largest non-government employer and produces more than 70% of its export earnings, 30% of its gross domestic product and 50% of government revenue, according to De Beers.
In 2008, De Beers and Botswana’s government established Diamond Trading Company Botswana, another joint venture that sorts and values Debswana’s production. It also sells aggregated diamonds to local manufacturers.
Anglo’s shares rose by 2,28% to trade at R302,49 in late-afternoon trade on Friday.
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