Report: Diamond Giant De Beers in Talks to Sell Stake
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29.11.09, 10:08
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Mining
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Diamond giant De Beers discussed with shareholders the possibility of selling a stake ahead of a March deadline to refinance a $1.5 billion facility, said two people familiar with the proposal, Bloomberg reported.
Talks have taken place with Anglo American Plc, the Oppenheimer family and Botswana, the diamond company’s three shareholders, said the people, who declined to be identified because the discussions are private. The options also under consideration are shareholders injecting funds into De Beers, and the lenders agreeing to refinance without any contribution from the investors, one of the people said, according to the Bloomberg report.
De Beers said in February it would borrow $500 million from shareholders, citing the collapse in diamond demand. Sales are at 47% of the level a year earlier, Managing Director Gareth Penny said November 24.
Diamond miner De Beers’ $1.5 billion facility is due in March and the company has another $2 billion of debt due in 2012, said Lynette Gould, a spokeswoman for the De Beers diamond company in London. She declined to comment on the shareholders’ discussions.
Calls made to Thomas Claiborne, a director in Johannesburg at E. Oppenheimer & Son, the company that represents the Oppenheimer family’s interests, weren’t answered. Mpho Gucha, a spokesman for Botswana’s Ministry of Minerals and Energy and Water Resources, declined to comment.
Anglo owns 45% of De Beers, the Oppenheimers 40% and Botswana, the rest.
Bloomberg
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By: PolishedPrices
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