On Wednesday, Gupta-owned Oakbay Investments announced the sale of Tegeta Exploration and Resources to Swiss-based Charles King SA for $227 million.
Charles King SA owner Amin Al Zarooni said: “Opportunities in mining in South Africa are extremely attractive and we have been looking for a long time to invest in the Rainbow Nation. […] Mining is an excellent growth sector on the continent and with this acquisition, our expansion plans on the African continent kick starts.”
He added that once the business has been fully acquired, they will be seeking a black economic empowerment Partner.
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Tegeta, which bought Optimum from Glencore in 2016 for $151 million, owns Optimum, Koornfontein and the Optimum Coal Terminal, Engineering News reported.
Oakbay comments in a company statement
Citing an Oakbay investments statement, Engineering News reported: “Oakbay said in a statement that the firm “has recently seen a radical transformation in its fortunes”.
“Emerging from business-rescue less than a year ago, the three businesses are now set on a sustainable and profitable trajectory.
“The sale is subject to regulatory requirements and the fulfilment of the conditions in the agreement, which are expected to be concluded within 12 months.
“Oakbay has stipulated that the purchaser safeguards employment in the mines. Additionally, the agreement has stipulated that the purchaser must have a minimum of 30% of the shares allocated to a black empowerment partner.
“The sale is part of Oakbay’s commitment to preserve jobs, provide certainty to over 7 500 hard-working employees throughout the group and to safeguard the inherent value of the businesses in which they work.
“Under new ownership, Oakbay believes that the business and its employees will have the bright and prosperous future they deserve.”
Ronica Ragavan, acting Oakbay CEO, said: “The sale of Tegeta represents a further step forward in delivering our strategy of preserving jobs by securing the future of the businesses we have developed and grown. Tegeta is a strong business and the Charles King company will be an excellent new owner. We wish both of them well for the future.”
Featured image: Stock