founders clash over gem trader's future as Botswana deal looms

H.B. Fuller

11/09/2023 18:03

LONDON, Sept 11 (Reuters) - Diamond processor and trader
HB Antwerp said on Monday it had removed one of its three
co-founders from management following differences over strategy,
a development that comes amid a pending sales pact with major
producer Botswana.
    Oded Mansori, who co-founded HB Antwerp in 2020 with
partners Shai de Toledo and Rafael Papismedov, said he was
taking them to court over his removal. 
    "On September 1, HB terminated Mr Oded Mansori's management
role in all the HB Companies," the Belgian company said in a
statement, citing a "sharp difference in strategic vision and
approaches to business".
    The government of Botswana, the world's No. 1 diamond
producer by value, said in March that it had agreed to buy a 24%
stake in HB Antwerp. As part of the deal, state-owned Okavango
Diamond Company would supply HB with an undisclosed quantity of
rough diamonds for five years. 
    The deal is yet to be signed.  
    Mansori, a long-time diamond dealer, said in a separate
statement that he was "determined to defend his vision and to
fight for the wellbeing and the future of HB," and that "a legal
process is currently underway in court." 
    Mansori, who declined to comment further, said he was still
a shareholder in the company.
    HB also has a partnership with Lucara Diamond Corp  LUC.TO ,
buying stones of 10 carat quality and above from the
Toronto-listed miner's Karowe Mine in central Botswana at prices
based on the estimated polished outcome of each diamond.
    Lucara did not immediately respond to a request for comment
on whether the legal tussle could impact its own deal with HB
Antwerp. 
    In 2022, HB Antwerp partnered with Microsoft to track mined
gems via blockchain, as consumers focus on clearing the supply
chain of fraudsters and diamonds mined in war zones and sold to
fund insurgencies. 
    Other diamond miners, including Anglo American's  AAL.L 
unit De Beers, also use blockchain platforms to trace their
diamonds and verify authenticity.
    

 (Reporting by Clara Denina and Felix Njini; Editing by Susan
Fenton)
 ((Clara.Denina@thomsonreuters.com;))