Belgian diamond companies Diarough and Pluczenik have joined former De Beers CEO Gareth Penny’s bid for the miner as the deadline nears for making an offer, Rapaport News has learned.
The two Antwerp-based manufacturing and trading businesses would provide a financial investment in return for a stake in De Beers, sources with knowledge of the matter told Rapaport News over the past few days. Rosy Blue, another manufacturer, will also potentially participate, the sources said. All three are longtime De Beers sightholders.
It’s unclear whether the investors will be the companies or their key individuals — Sonu Parikh at Diarough, Pluczenik chairman and CEO Chaim Pluczenik, and Ravi Bhansali, managing director at Rosy Blue in Antwerp. They all declined to comment on Tuesday.
Three groups are lining up bids for De Beers ahead of the Thursday deadline that 85% owner Anglo American has set.
Penny, who led De Beers from 2006 to 2010 and is now chairman of investment firm Ninety One, has been a high-profile suitor for almost a year.
Nir Livnat, executive chairman of Switzerland-based sightholder Diacore, is also in the running, according to a Bloomberg report from last Friday and to industry sources who spoke with Rapaport News this week. Diacore has partnered with De Beers on large and high-profile diamonds, including a $40 million blue rough in 2021.
The third contender is Michael O’Keeffe, non-executive chair of Burgundy Diamond Mines, according to Bloomberg and industry sources. O’Keeffe — whose company owns the Ekati mine in Canada — also has a diamond dealer working alongside him in his bidding effort, said one of the sources.
The Botswana government, which owns 15% of De Beers, has expressed interest in increasing its stake, meaning any private bidders would need to work closely with the mining nation.
Last month, The Economist reported that Botswana was only seeking “at least 25%,” giving it a large enough minority to “veto major decisions.” However, the Bloomberg report said Botswana still wanted a majority holding.
Angola is also seeking a stake of 20% to 30% in De Beers, Reuters reported in February.
Anglo American declined to comment. Penny, Livnat, O’Keeffe and the Botswana government were unavailable for comment as of press time.
Image: Diamonds at DTC Botswana, a government-De Beers joint venture that sorts and values rough. (Ben Perry/Armoury Films/De Beers)
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Source : Rapaport