Glencore, Ramaphosa Acquire 70% Stake Of Optimum Coal

Coal mining

VENTURES AFRICA – A unit of global commodity trader Glencore and South African businessman Cyril Ramaphosa have finalised the purchase of just over 70 percent of Optimum Coal, Reuters has reported.

 

Optimim Coal, South Africa’s sixth-biggest coal miner, confirmed this on Monday as the consortium including a Glencore subsidiary, Piruto BV, and Ramaphosa’s Lexshell 849, who have been in talks with the coal company since last year, finally agreed with the Optimum to acquire controlling stakes in the company.

 

According to an Optimum statement: “The Consortium has now acquired, directly and indirectly, 71.10 percent of the issued ordinary share capital of Optimum”

 

Shareholders holding some 7.79 million of Optimum shares have accepted the mandatory offer of R38 () per share which closed on Friday. Part of the company is owned by its employees and the local communities via two trusts.

 

The consortium had been in talks with Optimum due to to the coal producer’s reserves and access to the Richards Bay Coal Terminal (RBCT).

 

According to Reuters, all is set for Optimum to be delisted from the Johannesburg Stock Exchange on July 6.

 

Glencore, the world’s largest commodities trading company, has production facilities around the world that supply metals, minerals, crude oil, oil products, coal, natural gas and agricultural products clients in the manufacturing sector.

 

In March this year, Optimum Coal appointed Glencore’s partner and local politician-turn-businessman Cyril Ramaphosa as chairperson and non-executive director of the company, perhaps paving way for the eve