Anglo American has entered into an agreement with CHL and Centhold International Limited ("CIL"), together representing the Oppenheimer family interests ("CHL Group"), to acquire their 40% interest in DB Investments and De Beers sa ("De Beers") for a total cash consideration of US$5.1 billion, subject to adjustment as provided for in the agreement. Under the terms of the existing shareholders' agreement between Anglo American, CHL and the Government of the Republic of Botswana (GRB), the GRB has pre-emption rights in respect of the CHL Group's interest in De Beers, enabling it to participate in the transaction and to increase its interest in De Beers, on a pro rata basis, to up to 25%. In the event that the GRB exercises its pre-emption rights in full, Anglo American, under the proposed transaction, would acquire an incremental 30% interest in De Beers, taking its total interest to 75%, and the consideration payable by Anglo American to the CHL Group would be reduced proportionately.
Cynthia Carroll, Chief Executive of Anglo American, said: "This transaction is a unique opportunity for Anglo American to consolidate control of the world's leading diamond company - De Beers. Today's announcement marks our commitment to an industry with highly attractive long term supply and demand fundamentals. Underpinned by the security of supply offered by a new 10-year sales agreement with our partner, the Government of the Republic of Botswana, this forms a compelling proposition. De Beers' management team has led the business successfully through the financial crisis and into a stable position and it is now well placed for the future, with improving performance throughout 2011. I believe that the benefits brought by Anglo American's scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers' business and iconic brand will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market."
