Botswana plans to renegotiate its stake in HB Antwerp, aiming to double its shareholding without additional cost due to a downturn in the diamond market, said the country’s mines minister on Tuesday.
As the world’s leading diamond producer by value, Botswana’s economy has been heavily impacted by decreased demand for diamonds, driven by a global economic slowdown.
Minister Lefoko Moagi informed parliament that the weaker market has affected HB Antwerp’s valuation, allowing Botswana to seek more shares for the same investment made in 2023.
Instead of the originally proposed 24%, Botswana will aim to secure 49.9% of HB Antwerp’s shares without injecting more capital, as per the minister’s statement.
Previously, Botswana allocated 890 million pula ($65.95 million) for a 24% stake, valuing the company at $275 million. The HB Antwerp deal is tied to ongoing negotiations with De Beers.
