[miningmx.com] — AFTER more than a century’s involvement in diamonds, the Oppenheimer family is to bid goodbye to its stake in De Beers after it accepted a $5.1bn offer from Anglo American for its 40% stake in the company.
The deal would increase Anglo’s stake in De Beers from the current 45% to 85%, although the Botswana government – who owns the remaining 15% – could decide to take part in the transaction and increase its own stake in De Beers to 25% by way of pre-emption rights.
“In the event that (Botswana) exercises its pre-emption 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 would be reduced proportionately,” read a statement issued by Anglo.
De Beers chairman Nicky Oppenheimer, who also represents the Oppenheimer familty interests, said the decision to sell hasn’t been easy. “This has been a momentous and difficult decision as my family has been in the diamond industry for more than 100 years and part of De Beers for over 80 years,” he said.
“After careful and deliberate consideration of the offer, and what is in the best interests of the family, we unanimously agreed to accept Anglo American’s offer.
“Anglo American is the natural home for our stake as they have been major shareholders in De Beers since 1926 and have a deep knowledge of the diamond business.”
Should the deal be closed later than August 2012, the Oppenheimers would be due an additional $50m. Also, Anglo would have to cough up a break fee of $75m should the transaction not close.
