Botswana may raise De Beers stake as Anglo weighs spin-off

Vector

06/06/2024 08:46

JOHANNESBURG, June 6 (Reuters) - The Botswana government
may raise its shareholding in global diamond miner De Beers,
President Mokgweetsi Masisi told JCK News, after parent company
Anglo American  AAL.L  said it plans to spin off or sell the
business.
    The government owns a 15% stake in De Beers and Botswana
accounts for 70% of the company's annual rough diamond supply.
    Anglo outlined a radical review of its business including a
sale or divestment of the diamond business to focus on copper,
iron ore and a fertilizer project in the UK to fend off a
takeover from bigger rival BHP Group  BHP.AX  .  
    Masisi told JCK in Las Vegas that Anglo's sale of De Beers
would be "the best thing" if it happens.
    The government could raise its shareholding in De Beers "if
it's attractive to," Masisi told the online diamond news
channel. The president in May told CNBC Africa that government
would defend its interests in the diamond miner.
    Among the plans Anglo could consider is an initial public
offering for the diamond business, Reuters reported on May 14,
citing sources.
    Like other luxury goods, diamond prices have been hammered
by a slump in global demand. De Beers has been limiting supply
and offering flexibility to contracted customers. In February,
Anglo announced a $1.6 billion impairment charge on De Beers.
Anglo acquired De Beers in 2011, buying the Oppenheimer family's
40% stake for $5.1 billion.
    Masisi told JCK News Botswana's ideal partner in De Beers
would be a long-term investor. The government will try to keep
the "bad guys out" and wants investors whose vision is aligned
with the government's.
    "One of the characteristics of a bad owner is someone who
has impatient capital," Masisi said. "This industry requires
somebody who is in it for the long-haul, because it has its ups
and downs."
    
    

 (Reporting by Felix  Njini; Additional reporting by Clara
Denina. Editing by Jane Merriman)
 ((Felix.Njini@thomsonreuters.com; Reuters Messaging:
felix.njini@thomsonreuters.com))