See More

Ramaphosa in bid for Optimum Coal

Sep 01 2011 11:40 Reuters

Related Articles

Optimum Coal confirms bid interest

Shanduka wants to buy Optimum - sources

Optimum Coal surges on higher output

Optimum hit by coal strike

Glencore acquires Optimum stake

Transnet wary of public-private deals

Johannesburg - Optimum Coal confirmed on Thursday a consortium - including a unit of commodity trading giant Glencore as well as prominent politician-turned tycoon Cyril Ramaphosa - is interested in buying it for about $1bn.
The move on Optimum, South Africa’s sixth-largest coal producer, is seen as showing Glencore’s appetite for deals in volatile equity and commodity markets, which it has said will produce bargains.
“The proposed transaction would include a general offer to the shareholders of Optimum for a cash consideration of R34 per share,” Optimum said in a statement.

That would value it at about $1bn and be a premium of R1.25 per share on the R32.75 its stock price was fetching in early Thursday trading.
Optimum said the consortium includes Piruto BV, a wholly-owned subsidiary of Glencore, and Lexshell 849 Investments Limited, a company owned by Ramaphosa.

Sources last week said Glencore and Ramaphosa were stalking Optimum, and on Monday the South African company said Piruto BV had taken a 14.1% stake in it.
This would be Glencore’s most significant purchase since its record listing, when the company sacrificed its fiercely protected privacy to gain the balance sheet firepower for acquisitions.
Glencore’s deep pockets and Ramaphosa’s influence would make for a formidable bid that could nullify any opposition arising from shareholders, some of whom may be reluctant to see the trader extend its reach in South Africa.
Optimum, a mid-size producer, has export capacity and reserves that make it attractive prey for big foreign companies hoping to capitalise on Indian and Chinese demand.
glencore  |  cyril ramaphosa  |  china  |  coal miners


Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...