Anglo American receives shareholder approval for stake in De Beers

Anglo American has received 99.94 percent votes in approval by its shareholders, towards acquiring additional 40 percent stake in De Beers, reports say. The approvals came in at a general meeting held in London last week.

The Anglo American takeover of the Oppenheimer family’s stake in De Beers is pegged at $5.1 billion and is expected to conclude by the end of the year. This acquisition still requires to go through the regulatory and government approval.

As per the agreement between Anglo American ( currently holds 45 percent stake in De Beers), the CHL Group which represents the Oppenheimer family’s interests in De Beers and the Government of the Republic of Botswana (GRB) which currently holds 15 percent stake in De Beers; 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 increase its interest in De Beers, on a pro rata basis, to up to 25 percent. If the GRB exercises its pre-emption rights, Anglo American would reduce its acquisition to 30 percent and also its consideration payable to the CHL Group.