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


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

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Money Clinic

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

Voting Booth

People who fall victim to Ponzi scams are:

Previous results · Suggest a vote