- Tsaone Segaetsho
The story of Anglo American has all the international media stopping short of saying the giant miner decided to offer De Beers as a sacrifice amid BHP piling pressure of take over. Botswana Government, having 15 percent on De Beers, is bound to be affected the most. Also, De Beers and the Botswana government jointly co-own the largest diamond producer in the world by value, Debswana.
In an exclusive interview with The Executive Botswana on Thursday, Debswana deputy chairperson Emma Peloetletse is mostly diplomatic saying government is observing while being “prepared for anything.”
“We are aware (of developments in Anglo American). But I can assure you is that we will protect the interest of the Republic of Botswana and its citizens within the confines of the law. We cannot say much on the issues.
We have started preparing ourselves from the first time BHP offer4ed unsolicited bid. I am sorry I cannot say much in terms of how we continue to ready ourselves Sir. I hope you will understand the sensitivity around the whole situation,” said Peloetletse who is also Permanent Secretary to the President.
This reiterated President Mokweetsi Masisi told CNBC Africa at the U.S.-Africa Business Summit in Dallas, Texas in a fortnight ago that while no-one had approached Botswana about the matter, the government would defend its interests in De Beers, in which it owns 15 percent. De Beers and the Botswana government jointly co-own Debswana Diamond, the largest diamond producer in the world by value. Masisi said this after the first bid by BHP, this week BHP has come up with another deal which Anglo American responded by announcing efforts to disinvest from De Beers, something which the experts in international media said this was a masterstroke by Anglo America to fend of BHP.
While Anglo American has rebuffed any effort of take-over by BHP and has made a checkmate move by announcing plans to disinvest in De Beers a day after a second bid from BHP. This bold announcement came with a lot of global attention and Anglo American shares fell by 3 percent in London Stock Exchange after the mining giant said of De Beers, “to be divested or demerged, to improve strategic flexibility.”
According to U.K. company takeover rules, BHP has up until May 22 to submit a formal and final offer or walk away, hence Anglo America continue to play chess and hardball. Another bids are expected to follow until next week Wednesday.
While Anglo America is offering most of its mining business, like De Beers, akin Biblical Abraham offering a sacrifice as his son, the news have hit hard in Botswana.
The former Accountant General of the Republic of Botswana, Peloetletse, further hinted on the ambiguity of government’s relationship with its diamond business partners when asked of any ambitions by Botswana to increase its shareholding on De Beers when offered by Anglo American.
“There are many pieces of a puzzle that are still fluid and we alive to our entitlements and like I said, our job is to fully protect our interests,” said Peloetletse
