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Ministry of Minerals, Energy and Water Resources (MMEWR)
Anglo-American Announces its agreement with CHL to acquire 4...
04/11/11
Anglo-American Announces its agreement with CHL to acquire 40% interest in De Beers

The Government of the Republic of Botswana has been informed of the agreement between Anglo-American plc and CHL Holdings Limited (CHL), the latter being 100% owned by the Oppenheimer family, through which Anglo-American seeks to acquire an incremental interest in De Beers, which would increase Anglo-American's current 45% shareholding in De Beers up to 85%.
 
The transaction is expected to take between nine and twelve months for its full implementation.

The current shareholding of De Beers is 45% Anglo-American, 40% CHL (Oppenheimer Family) and 15% Government of the Republic of Botswana.

Under the terms of the existing shareholder's agreement the Government of the Republic of Botswana has pre-emption rights with respect to the CHL Group's interest in De Beers, enabling Government to participate in the transaction and to increase its own interest in De Beers, on a pro rata basis, up to 25%. This option will be explored in the coming months.


The Government of the Republic of Botswana appreciates the fact that Anglo American has had a long standing stake in De Beers both historically and currently as the major shareholder in the company. Anglo-American thus already has a deep corporate understanding of the global diamond industry, as well as value of De Beers as the world's premier diamond brand for more than a century.

The Government of the Republic of Botswana would further observe that the transaction does not in any way alter the existing arrangement for the management of De Beers, including Mr. N.F. Oppenheimer's position as Chairman, prior to its completion, and that Mr. P. Mellier will also continue as CEO of De Beers.

The Government of the Republic of Botswana, furthermore, wishes to observe that it does not anticipate that today's announced transaction will have any significant impact on its recently signed sales agreement with De Beers.

Responding to the news of the transaction, Botswana's Minister of Minerals, Energy and Water Resources, the Honourable Dr. Ponatshego Kedikilwe, said:

.The diamond industry is a major contributor to our economy in Botswana. The Government of Botswana is grateful to the Oppenheimer family for their vision and contribution to the diamond industry and to Botswana and will proudly take forward that legacy with Anglo American. We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture.

Ministry of Minerals, Energy and Water Resources, Public Relations Unit
Tel: 365 6641/6610. Fax: 390 9368

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