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DTC SA to Join De Beers in Black Empowerment Plan
Jul 30, 2013 2:06 PM
By Sandra Mardenfeld
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RAPAPORT... Ponahalo Holdings will acquire a 26 percent stake of the Diamond Trading Company South Africa (DTC SA) in a deal approved today by De Beers. Ponahalo is a Black Economic Empowerment (BEE) partner of De Beers Consolidated Mines (DBCM).
The business will transfer as a going concern under section 197 of the Labour Relations Act. No changes to employees' terms and conditions will occur. Ponahalo obtained a 26 percent stake in DBCM during a 2006 broadly based empowerment (BEE) transaction.
"We are pleased to continue to align our South African operations to the transformation objectives of the country," said Barend Petersen, the chairman of DBCM. "The post-recession recovery of De Beers and the increasingly strong performance of DBCM over the past few years have enabled us to now deliver on our determination to empower DTC SA."
Besides broadening BEE participation in DBCM, the deal will improve the company's cash flow and strengthen its balance sheet, according to De Beers.
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Tags:
DBCM, De Beers, DTC SA, empowerment plans, Ponahalo Holdings, Sandra Mardenfeld
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