Diamond giant De Beers has finalised its deal to sell 26 per cent of its South African unit to a new black-owned firm and has trimmed the price.
The price of selling the stake to Ponahalo Holdings was set at about 3.7 billion rand ($610.6 million), De Beers said in a statement. This is 100 million rand ($16 million) less than when the deal was first announced last November.
De Beers, 45 per cent owned by mining group Anglo American, said Standard Bank was financing the entire purchase price over seven years, of which 800 million rand would be guaranteed by De Beers.
"The transaction has received the necessary regulatory approvals from the South African Reserve Bank and the South African Competition Tribunal," the statement said.
Remaining conditions are due to be fulfilled by April 20th, it added.
Following completion, the purchase price will continue to be subject to adjustments as specified in the agreements, De Beers said, giving no further details. De Beers forged the deal with Ponahalo, half of which will be owned by employees and pensioners, to meet government demands to include more blacks in the mainstream economy.
The other 50 per cent of Ponahalo will be held by a black-led investment firm. The firm, in addition to owning part of De Beers, was set up to stimulate economic activity in mining areas.