South Africa's Ponahalo Holdings to Buy 26 percent of DBCM

(IDEX Online News) – South African black empowerment firm Ponahalo Holdings, which owns 26 percent of De Beers Consolidated Mines (DBCM), is acquiring 26 percent the Diamond Trading Company South Africa (DTC SA).

DBCM chairman Barend Petersen commented: “We are pleased to continue to align our South African operations to the transformation objectives of the country. The post-recession recovery of De Beers and the increasingly strong performance of DBCM over the past few years have enabled us to now deliver on our determination to empower DTC SA.” Ponahalo bought the share in DCBM in 2006.

The DTC SA business will be transferred as a going concern under section197 of the Labour Relations Act, and there will not be any changes to employees’ terms and conditions.

De Beers said the acquisition will improve DBCM's cash flows and strengthen its balance sheet.