IPO Option for De Beers "Very Much on the Table"
September 07, 24
(IDEX Online) - Anglo American may opt to float De Beers rather than sell it, because of the ongoing weak demand for natural diamonds.
A spokesman for De Beers said it was working on a potential listing and a sale of the business, according to the UK's Mail on Sunday newspaper, as "both options are very much on the table".
The paper quoted Raj Ray, analyst at BMO Capital Markets, who said public markets had been challenging for diamond firms, and the near to medium-term outlook remained muted.
Anglo's CEO, Duncan Wanblad has indicated previously that it would consider a trade sale, a demerger, or an initial public offering (IPO) to maximize value for shareholders.
It announced in May that it was seeking to focus on copper and other more profitable commodities, following a hostile an unsuccessful takeover bid by Australian mining giant BHP.
De Beers saw sales slump last year - down 36 per cent to $3.63bn, per carat prices down 25 per cent to $147 - and it made a loss in the second half of 2023.
Pic courtesy De Beers