Africa-Press – Botswana. After the government stated its concerns that its preemptive rights were being overlooked, Anglo American has denied sidelining Botswana in its ongoing efforts to divest or spin off De Beers.
The majority stakeholder in De Beers, Anglo American, has denied bypassing Botswana in the process of selling the mining conglomerate.
This came in the wake of an interview with global publication, The Financial Times, in which the Minister of Minerals and Energy, Bogolo Kenewendo, last week expressed Botswana’s discontent at not being properly engaged or informed about Anglo’s sale intentions.
The Botswana government, which has a 15 % stake in De Beers, feels sidelined in the process and has accused Anglo of lacking transparency in the process.
Anglo not transparent
Kenewendo stated that any plans to dispose of De Beers “without our support will be difficult to achieve”. She asserted that Anglo has not maintained a transparent line of communication in the process.
“Our partners at Anglo American have, regrettably, failed to manage the process transparently or in co-ordination with the government and with our support,” Kenewendo told The Financial Times.
However, Anglo denied any claims of sidelining Botswana in a statement responding to Botswana’s concerns. According to The Financial Times, the company insists that it is following appropriate channels and procedures without excluding Botswana from the process.
Sell or list and demerge
“As our longstanding partner, we are of course engaging the Government of the Republic of Botswana on a regular basis and at all appropriate stages of our process in which we will either sell or list and demerge our 85 percent shareholding in De Beers,” Anglo said in the statement.
According to the global publication, a source close to the sale process warned that a deteriorating relationship between Anglo and Botswana could impact investor confidence and future joint ventures.
De Beers nowhere without Botswana
The source warned that any opposition by the Botswana Government to Anglo’s plans could spell doom for a potential sale. “Without Botswana and Debswana, De Beers are nowhere,” the source was quoted as saying.
“If the Botswana Government is not on board, they could kibosh the whole thing. Botswana is approximately 70 percent of De Beers’ production.”
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