Botswana welcomes Anglo-American acquisition of 40% of De Beers

Government of the Republic of Botswana has been informed of the agreement between Anglo-American plc and CHL Holdings Limited (CHL),the latter being 100 per cent owned by the Oppenheimer family, through which Anglo-American seeks to acquire an incremental interest in De Beers, which would increase Anglo-American's current 45per cent shareholding in De Beers up to 85 per cent.The Bostwana Gazette has reported.The report quoting a statement from the Office of the President, said the transaction is expected to take between nine and twelve months for its full implementation. The current shareholding of De Beers is 45 per cent Anglo-American, 40 per cent CHL (Oppenheimer Family) and 15 per cent Government of the Republic of Botswana.Under the terms of the existing shareholder's agreement the Government of the Republic of Botswana has pre-emption rights with respect to the CHL Group's interest in De Beers, enabling government to participate in the transaction and to increase its own interest in De Beers, on a pro rata basis, up to 25 per cent. This option will be explored in the coming months, reads the statement.'The Government of the Republic of Botswana appreciates the fact that Anglo American has had a long standing stake in De Beers both historically and currently as the major shareholder in the company. Anglo-American thus already has a deep corporate understanding of the global diamond industry, as well as value of De Beers as the world's premier diamond brand for more than a century,' says OP, further noting that the Botswana government 'would further observe that the transaction does not in any way alter the existing arrangement for the management of De Beers, including Mr N.F. Oppenheimer's position as Chairman, prior to its completion, and that Mr. P. Mellier will also continue as CEO of De Beers.'Furthermore, the Botswana government pledges to 'observe that it does not anticipate that today's announced transaction will have any significant impact on its recently signed sales agreement with De Beers.'Responding to the news of the transaction, Botswana's Minister of Minerals, Energy and Water Resources, Honourable Dr. Ponatshego Kedikilwe, said: 'The diamond industry is a major contributor to our economy in Botswana. The Government of Botswana is grateful to the Oppenheimer family for their vision and contribution to the diamond industry and to Botswana and will proudly take forward that legacy with Anglo American. 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.
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