The shareholders of De Beers, the world's largest diamond producer, have agreed in principle to a rights issue to reduce debt, the firm said today.
The company, 45 per cent owned by mining group Anglo American, did not say how much it expected to raise in the fundraising.
"The shareholders of De Beers... have agreed in principle, and subject to satisfactory refinancing terms of the company's existing debt, to further investment in De Beers by way of a rights issue," it said in an emailed statement.
South Africa's Oppenheimer family owns 40 per cent of De Beers and the Botswana government the remaining 15 per cent stake.
On Friday, De Beers said it expected banks to renew its $1.5 billion debt facility before it comes due in March next year.
"By reducing De Beers' level of external debt and improving its capital structure, this investment would better enable the company to take advantage of new opportunities and demonstrate the shareholders' confidence in De Beers' continued market leadership as the recession gives way to recovery," De Beers said.
De Beers posted a 99 per cent plunge in first-half net profit in July due to tough markets but said it would not need any more shareholder loans.