Anglo-American Supports De Beers Rights Issue

Anglo American announced it is subscribing in full to the $1 billion rights issue announced by De Beers, which it owns 45% of.

Anglo American will invest $450 million in equity as part of a commitment by each of the three shareholders in De Beers to pro rata equity contributions, it said.

An Anglo statement noted De Beers had a "successful restructuring of its business" in 2009 and achieved significant efficiency improvements and cost reductions, with production and operating costs reduced by 45% and a 23% reduction in its global workforce as production was brought in line with demand.

The rights issue forms part of a wider refinancing package for De Beers designed to provide the company with a more appropriate capital structure and to secure ongoing banking facilities, the company said.