Botswana is planning to renegotiate its proposed acquisition of a shareholding in Belgian gem dealer HB Antwerp to double its stake at no additional cost in response to the slowdown in the diamond market, according to the country’s mining minister.
The weaker diamond market, which gave the nation the chance to renegotiate, Minister Lefoko Moagi informed Parliament had an impact on the company's valuation.
"We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023," he was quoted by Reuters as saying.
"Instead of the 24%, we will negotiate to get 49.9% for the same amount initially proposed.”
The finance ministry's budget records indicated last February that the Belgian company was valued at approximately $275 million, with 890 million pula ($65.95 million) allocated for the 24% stake.
The HB Antwerp agreement was disclosed in March 2023 as Botswana negotiated a new sales contract with De Beers
Botswana asserted at the time that the HB Antwerp arrangement would bolster its position in the downstream diamond sector as it attempted to expand its ability to market its stones beyond a decades-old partnership with De Beers.
It encompasses the provision of rough diamonds to the dealer for five years through the state-owned Okavango Diamond Company (ODC).
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
