Nicky Oppenheimer Turns Down De Beers’ Divestment Planning
Dispelled rumors to “sell a 40% stake”...Nicky Oppenheimer, chairman of De Beers, dispelled rumors that he is planning to sell a 40 percent stake in company and expressed confidence that De Beers would bring good returns on his investment.
“As things stand at the moment, we are absolutely happy...we think it is a good business and will give us a proper return on that investment,” Oppenheimer told Reuters.
Reports surfaced in December that Anglo American, which holds 45 percent of De Beers, was weighing a bid for Oppenheimer’s stake -- after E. Oppenheimer & Son International Limited sold 2.1 million shares in Anglo.
Oppenheimer told Reuters that reports of his prospective divestment from De Beers came as a complete surprise, but he did not dismiss the possibility of such a deal happening in the future.
“I would be a fool to say...that such a thing will never happen...But it seems to me an unlikely event,” he said.
De Beers is expected to post strong 2010 results when it reports in February as rough sales through the Diamond Trading Company (DTC) rose an estimated 48 percent to about $4.8 billion, according to Rapaport estimates. The company also tightened costs during the year.
“Last year was better than any of us could have expected...we were extraordinarily pleased and I think surprised,” Oppenheimer said.
DTC opened its first sight of the year on Monday.
By: Avi Krawitz of RAAPORT
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