Oppenheimers sell third of family stake

JOHANNESBURG – The Oppenheimer family said on Friday it had sold a third of its shareholding in Anglo American Plc to China Vision Resources Limited, sending Anglo’s shares in Johannesburg two per cent higher.

The Oppenheimer family, which founded the diversified miner, said they had sold 17 million shares, equating to 33 per cent of the family’s current shareholding in Anglo. E Oppenheimer & Son, the family’s investment vehicle, will continue to hold over two per cent of Anglo, and keep its 40 per cent stake in the world’s biggest diamond producer, De Beers.Shares in Anglo closed at 343,98 rand, with traders saying there was speculation that further stake sales were in the offing.The family said the sale was driven by its strategy of rebalancing the investment portfolio and diversifying assets, which had become increasingly weighted towards the mining sector since Anglo moved to London seven years ago.”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,” De Beers’ Chairman, Nicky Oppenheimer said.He said the recent appointment of Cynthia Carroll to succeed Tony Trahar as chief executive officer was a positive move.Oppenheimer said the family’s confidence was reflected in E Oppenheimer & Son’s intention to retain its remaining stake in Anglo, worth at today’s prices over US$1,6 billion, and that he would continue as a non-executive director of Anglo.Anglo has mining interests ranging from precious and industrial metals to coal, iron ore, diamonds as well as paper and packaging.Oppenheimer said while Anglo was a diversified business, its transformation into a focused mining company had left the family with limited exposure to other sectors.”E Oppenheimer & Son will use the proceeds to invest into sectors that are traditionally counter cyclical to its major investments in the mining industry,” he said.E Oppenheimer & Son is planning to increase its programme of direct investment in Africa and will be exploring a series of new, diverse investment opportunities in largely non-mining sectors in a number of African countries, the family said.The investment company would also increase its long-term commitment to its South African private equity business through the injection of additional capital in the course of the next year.”We have analysed 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,” Oppenheimer said, citing this as part of the family’s commitment to Africa.Nampa-ReutersE Oppenheimer & Son, the family’s investment vehicle, will continue to hold over two per cent of Anglo, and keep its 40 per cent stake in the world’s biggest diamond producer, De Beers.Shares in Anglo closed at 343,98 rand, with traders saying there was speculation that further stake sales were in the offing.The family said the sale was driven by its strategy of rebalancing the investment portfolio and diversifying assets, which had become increasingly weighted towards the mining sector since Anglo moved to London seven years ago.”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,” De Beers’ Chairman, Nicky Oppenheimer said.He said the recent appointment of Cynthia Carroll to succeed Tony Trahar as chief executive officer was a positive move.Oppenheimer said the family’s confidence was reflected in E Oppenheimer & Son’s intention to retain its remaining stake in Anglo, worth at today’s prices over US$1,6 billion, and that he would continue as a non-executive director of Anglo.Anglo has mining interests ranging from precious and industrial metals to coal, iron ore, diamonds as well as paper and packaging.Oppenheimer said while Anglo was a diversified business, its transformation into a focused mining company had left the family with limited exposure to other sectors.”E Oppenheimer & Son will use the proceeds to invest into sectors that are traditionally counter cyclical to its major investments in the mining industry,” he said.E Oppenheimer & Son is planning to increase its programme of direct investment in Africa and will be exploring a series of new, diverse investment opportunities in largely non-mining sectors in a number of African countries, the family said.The investment company would also increase its long-term commitment to its South African private equity business through the injection of additional capital in the course of the next year.”We have analysed 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,” Oppenheimer said, citing this as part of the family’s commitment to Africa.Nampa-Reuters