RAPAPORT... Tension between De Beers and African Diamonds escalated yesterday when African Diamonds claimed that De Beers failed to notify it about a transfer of shares.
“The board of African Diamonds has been informed by its registrars that one million shares in an account we believe to be controlled by De Beers have been sold or transferred without the company being notified. This, if true, breaches Financial Services Authority (FSA) rules,” a statement from African Diamonds to the London Stock Exchange (LSE) read.
According to FSA rules, account holders must inform a company when shareholdings breach percentage points. African Diamonds says the account in question, which held 4,423,293 shares or 5.8 percent, now holds 3,423,293 shares or 4.49 percent
In response, De Beers said that it is seeking a full retraction of African Diamonds' allegations.
“We take our regulatory obligations extremely seriously and confirm that we made the necessary filings in accordance with the relevant regulations,” said Lynette Gould, De Beers spokesperson.
The two companies previously held a shareholder agreement in the AK6 diamond deposit in Botswana in which De Beers held a 70.3 percent stake. Last year, the speed at which to develop AK6 became a contentious issue between the two companies and resulted in De Beers selling its AK6 stake to Lucara Diamond Corp for $49 million.
LH