Oppenheimer Sells a Third of its Anglo American Stake

The Oppenheimer family has sold a third of its holding in Anglo American, the company it founded nearly a hundred years ago. The family, through its holding company E Oppenheimer & Son, will continue to hold over 2 percent of the firm, worth an estimated $1.6 billion, Reuters reported Friday.

The Oppenheimer's sold 17 million shares, a 1.01 percent holding in Anglo, to China Vision Resources Limited, reducing its holding to 2.29 percent.  According to a Dow Jones report, quoting a “person familiar with the situation”, China Vision paid about £425 million ($812 million) for the shares. China Vision is controlled by Larry Yung.

“Selling a third of our stake in Anglo American is a decision we have taken after lengthy deliberation about the composition of the family's investment portfolio,” Reuters quoted Nicky Oppenheimer.

The sale sent Anglo's shares on the Johannesburg exchange up 1.98 percent on speculation that another chunk of the world’s third biggest miner, and majority stakeholder in De Beers, might be sold.

"E Oppenheimer & Son will use the proceeds to invest into sectors that are traditionally counter cyclical to its major investments in the mining industry," Oppenheimer said, adding, “We have analyzed the opportunities which are opening up across much of Africa and feel that the time is right to establish a new business model for the continent”.

Anglo, which was founded in 1917 by Ernest Oppenheimer to mine gold, recently appointed Cynthia Carroll to CEO.