Anglo shareholders approve bid for De Beers

As expected, Anglo American (AAUK-Q) shareholders overwhelmingly approved the Anglo-led, US$18-billion bid for De Beers Consolidated Mines (DBRSY-Q).

The offer was recently upped by US$2 per share in response to two U.S.-based institutional investors, Brandes Investment Partners and Southeastern Asset Management, who have about 10% of the outstanding De Beers shares and were holding out for a higher bid. They have not revealed their voting intentions in light of the new offer.

Under the new offer, De Beers shareholders would receive 0.446 of an Anglo share plus US$15.35 in cash for each De Beers share, compared with 0.43 of a share and US$14.40 cash under the original offer.

The new offer also includes a US$1 special De Beers dividend and an Anglo final dividend of US$1.30 per Anglo share received.

The bidder, DB Investments, is a partnership of Anglo (45%), the Oppenheimer family (45%) and Debswana Diamond, which is jointly owned by De Beers and the government of Botswana. The group plans to take the diamond company private. The move would also do away with cross-holdings between Anglo and De Beers.

Anglo, the Oppenheimers and Debswana already hold 40% of De Beers. However, just 15% of the company’s investors would be able to block the buyout when the offer is put to a vote on May 18.