AFRICAN WORKERS GAIN A STAKE IN DE BEERS
De Beers to sell 26% of SA unit.
De Beers' South African workers are gaining a stake in the firm. Diamond giant De Beers has finalised a deal to sell 26% of its South African unit to a new black-owned company. The sale, which meets new rules from the South African government on increasing black economic empowerment, totals 3.7bn rand ($611m; £349m). This is 100m rand less than when the deal was first announced last autumn. The 26% stake is being bought by new firm Ponahalo Holdings, which is 50% owned by De Beers staff and pensioners, and 50% by a black investment firm.
"The transaction has received the necessary regulatory approvals from the South African Reserve Bank and the South African Competition Tribunal," said De Beers. It added that the entire purchase price was being financed over seven years by Standard Bank, of which 800m rand would be guaranteed by De Beers. The final deal is expected to be concluded by 20 April. Johannesburg-headquartered De Beers is 45%-owned by London-based global mining giant Anglo American. The investment company that owns 50% of Ponahalo Holdings is called Ponahalo Capital. The chairman of Ponahalo Capital is Manne Dipico, a senior member of the ruling African National Congress (ANC) who owns an 18% stake in Ponahalo Capital.
De Beers' South African workers are gaining a stake in the firm. Diamond giant De Beers has finalised a deal to sell 26% of its South African unit to a new black-owned company. The sale, which meets new rules from the South African government on increasing black economic empowerment, totals 3.7bn rand ($611m; £349m). This is 100m rand less than when the deal was first announced last autumn. The 26% stake is being bought by new firm Ponahalo Holdings, which is 50% owned by De Beers staff and pensioners, and 50% by a black investment firm.
"The transaction has received the necessary regulatory approvals from the South African Reserve Bank and the South African Competition Tribunal," said De Beers. It added that the entire purchase price was being financed over seven years by Standard Bank, of which 800m rand would be guaranteed by De Beers. The final deal is expected to be concluded by 20 April. Johannesburg-headquartered De Beers is 45%-owned by London-based global mining giant Anglo American. The investment company that owns 50% of Ponahalo Holdings is called Ponahalo Capital. The chairman of Ponahalo Capital is Manne Dipico, a senior member of the ruling African National Congress (ANC) who owns an 18% stake in Ponahalo Capital.
BBC NEWS REPORT.
posted by jackaranda at 9:17 pm
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