Brazilian group Odebrecht has agreed to sell its 16.4% stake in Angolan company Sociedade Mineira de Catoca to one of its remaining shareholders, the Brazilian press reported.
The aim of this sale, similar to others that the Brazilian group has been making, is to raise cash to meet legal commitments resulting from the corruption scandal known as “Lava Jacto” and strengthen its cash position ahead of future business deals.
The group agreed to pay US$3.5 billion and to undertake a thorough restructuring following a leniency agreement reached with the Brazil, United States and Swiss authorities.
Financial news agency Reuters reported that the stake put up for sale by the Brazilian group was acquired by state-owned diamond company Empresa Nacional de Prospecção, Exploração, Lapidação & Comercialização de Diamantes de Angola (Endiama) with the help of the remaining shareholders.
The agency cited banking sources as saying that the Brazilian group’s stake is estimated to be worth US$300 million, based on an estimated value of US$1.8 billion for the whole diamond mine.
Before this deal the shareholders of Sociedade Mineira de Catoca, which operates the fourth largest diamond mine in the world, were Endiama with 32.8%, Russian group Alrosa with 32.8%, LL International Holding (of the Israeli Lev Leviev group) with 18% and Odebrecht Mining Services, with the remaining 16.4%. (macauhub)