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Anglo Receives Final Approval for De Beers Acquisition

Jul 6, 2012 5:58 AM   By Dilipp S Nag
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RAPAPORT... Anglo American received the consent of the South African Minister of Mineral Resources to acquire an additional 40 percent stake in De Beers from the Oppenheimer family for $5.1 billion.

The consent is the final approval required for the transaction to proceed and now CHL Holdings Ltd., which represents the Oppenheimer family interests, will serve a formal preemption offer on Anglo American and the government of  Botswana  under the terms of the De Beers shareholders’ agreement, the company noted.

Anglo American stated that Botswana, which currently controls 15 percent in De Beers, has a preemption right in respect of the De Beers interests to be sold by CHL and increase its interest in De Beers, on a pro-rata basis, to up to 25 percent.

In November 2011, Anglo American sought to acquire the Oppenheimer  interest in De Beers, increasing the mining conglomerate's 45 percent stake to 85 percent, subject to certain conditions. Anglo American shareholders approved the acquisition plan in January 2012.

Anglo American stated that if Botswana exercises its preemption rights in full then it will acquire an incremental 30 percent interest in De Beers, taking its total stake to 75 percent, and the consideration payable by the company would be reduced proportionately.

The transaction is expected to close in the second half of 2012 as announced earlier, the company stated.
Tags: Anglo American, Botswana, De Beers, Dilipp S Nag, Oppenheimer, Rapaport
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