After reading up on this matter & listening to Mr Oppenheimer speaking about this on my Favourite financial show "MONEY WEB" on Friday I have other idea's
Diamond price was at it's highest a few months ago past 2008 price. July 2011
Now it has come down considerably since then.
Mr O said that this deal was done with Anglo's in the last 3 & 1/2 weeks ago.
The value was not based on prior values.
Anglo's have tried to purchase the family interest on a few occasion's.
"Nicky Oppenheimer, the De Beers chairperson who also represents the Oppenheimer family interests, said the decision to sell was tough."
How can a decision on this magnitude be made in 3 & 1/2 weeks
That for me was an indication that things are not what they seem.
Fin 24.com reports very interestingly:
" “The sudden decision by the Oppenheimer family to sell its 40% stake in De Beers to diversified global miner Anglo American $5.1bn (R40bn) has raised questions about the impact of nationalisation talk on investment.
Eskom chief economist Mandla Maleka said: “Anglo American has for years been unsuccessful in its attempt to buy the stake from the Oppenheimers.
One wonders whether the Oppenheimers are selling the stake due to commercial reasons or if there was pressure coming from certain quarters, like the nationalisation debate.” ”
Eskom chief economist Mandla Maleka said: “Anglo American has for years been unsuccessful in its attempt to buy the stake from the Oppenheimers.
One wonders whether the Oppenheimers are selling the stake due to commercial reasons or if there was pressure coming from certain quarters, like the nationalisation debate.” ”
The company has been run by the family directly for over 80 years.
Sir Ernest , Harry O and Nicky O.
Between them De Beers was built into a global diamond empire that currently sells about a third of the world’s rough diamonds.
This has even caught the National Union of Mineworkers (Num) off guard,they are scrambling to meet with Mr Oppenheimer on why his family was pulling out.
This has even caught the National Union of Mineworkers (Num) off guard,they are scrambling to meet with Mr Oppenheimer on why his family was pulling out.
Num has issues with the family on Social Responsibility over the years and this to them makes it even worse.
The family divesting shows a lack of confidence in the local mining industry considering they played a big role in developing the industry.
Even Num feel that "Nationalisation issues" are the order of the day.
I feel that, ANCYL & running of the country may be the reasons.
The Family have been over the last five years reducing interests in Anglo's which was also started by Sir Ernest & JP Morgan. Left 1.9%
Per MD of the family investment company E Oppenheimer & Son Group the family has “no intention at this stage” of further reducing its holding,
This needs to be seen.
If the money is not directed back into this country in one large investment then it will have no effect on the currency according to the IDC.
If it comes slowly it will not have any effect on the rand.
I think that this action shows the chickens are not coming home to roost & If these people who have always backed & I feel still do to a certain respect one must sit up & think seriously !!
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