De Beers has finalized a deal to sell 26 percent of its South African unit to a new black-owned company for $614 million.

The 26 percent stake is being bought by new firm Ponahalo Holdings, which is 50 percent owned by De Beers staff and pensioners, and 50 percent by a black investment firm.

“The transaction has received the necessary regulatory approvals from the South African Reserve Bank and the South African Competition Tribunal,” De Beers said in a statement.

It added that the entire purchase price was being financed over seven years by Standard Bank, of which 133 million would be guaranteed by De Beers.

The deal is expected to be finalized April 20.

The investment company that owns 50 percent of Ponahalo Holdings is called Ponahalo Capital.

The chairman of Ponahalo Capital is Manne Dipico, a senior member of the ruling African National Congress who owns an 18 percent stake.

JCK