BOTSWANA has appointed Lazard to advise on acquiring control of diamond giant De Beers, following Qatar’s recent $12bn investment pledge to the southern African nation, said the Financial Times last week.
The government confirmed hiring the French investment bank alongside Swiss boutique CBH Compagnie Bancaire Helvétique for “the potential acquisition of all or part of the De Beers Group”. The move comes as President Duma Boko publicly criticised De Beers for “not doing its job” and suggested government takeover.
Lazard brings extensive experience advising governments on complex transactions, including involvement in BHP’s failed Anglo American bid last year, said the Financial Times. Anglo currently holds 85% of De Beers, with Botswana owning the remainder, yet most diamonds originate from Botswanan mines.
The appointment of CBH has raised eyebrows within government circles and London banking communities, given the private wealth specialist’s limited mining merger experience. CBH director Sherzod Yusupov, handling the account, previously worked at UniCredit and was embroiled in a contentious Russian banking dispute involving jailed US investor Michael Calvey, said the newspaper.
Anglo American, divesting De Beers amid broader restructuring, received approximately nine first-round bids this month. Botswana holds matching rights on any third-party offers, though the global diamond downturn has severely complicated valuations.
Despite De Beers’ $4.9bn book value, industry sources expect substantially lower bids reflecting market conditions. The downturn has particularly impacted Botswana’s economy, which derives roughly 25% of GDP from diamonds.
Last week’s Qatari investment agreement with Al Mansour Holdings spans mining, tourism and agriculture sectors, potentially providing financing firepower for the De Beers acquisition. Mining Minister Bogolo Kenewendo previously indicated Botswana’s desire for controlling ownership of its primary economic asset.
