Brandes will drop opposition to bid for De Beers

Big De Beers shareholder Brandes Investment Partners said it would support a deal by an Anglo-led consortium to buy out the diamond giant.

In a statment on the PR Newswire Brandes said ”although the bid price is at the lower end of our estimated fair value range, (Brandes) no longer plans to oppose the proposed acquisition.”

 

Brandes said it would continue to evaluate whether its clients should hold, reduce or eliminate their exposure to De Beers or to Anglo American.

 

In related news, Metals group Union Miniere SA said it intends to sell its 0.9% stake in De Beers Consolidated Mines Ltd., Reuters reported.

 

Union Miniere, which owns its De Beers stake through its diamond unit Sibeka, is selling to a consortium of majority shareholders led by Anglo American PLC, a sister company of De Beers, which wants to take De Beers private in an $18.7 billion deal.

 

”Union Miniere intends to accept the current bid on the De Beers shares,” the company said in a statement.

 

Union Miniere said previously that it expects to generate around 130 million euros ($116 million) on its stake, about 25 million euros of which will be an after tax capital gain.

De Beers shareholders will vote May 18 on the proposed transactions.

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