Gupta-owned Oakbay has announced that it has
sold another of its companies - this time Tegeta Exploration &
Resources, which had scored a major contract from Eskom.
The company announced that it was selling Tegeta, which consists of Optimum, Koornfontein and Optimum Coal Terminal, to Swiss-based Charles King for R2.97bn.
This comes two days after the company announced its was
pulling out of its media interests, selling its shareholding in Infinity
Media and TNA.
The Gupta family and its companies have been central to allegations of state capture and their business dealing have come under the spotlight since a tranche of e-mails between members of the family and their associates was leaked.
Earlier this month, Finance Minister Malusi Gigaba announced a forensic investigation into a Tegeta report, which related to the coal supply contracts between Tegeta and Eskom.
The report paints a damning picture of how senior Eskom executives, including Matshela Koko and Anoj Singh, may have pressured Glencore into selling Optimum Colliery, on which Gupta-owned Tegeta Exploration and Resources swooped.
It also details how Eskom showed disdain for its own supply chain processes to aid Tegeta’s audacious bid for Optimum Colliery.
Oakbay said the decision to sell Tegeta was based on preserving jobs.
“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‚” it said in a statement on Wednesday.
“Under new ownership‚ Oakbay believes that the business and its employees will have the bright and prosperous future they deserve.
“The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations.”
It expected the sale to take a year to conclude. "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," it said.
Optimum Coal Terminal‚ Oakbay said, had recently seen a “radical transformation in its fortunes”.
Tegeta's buyer, Charles King is not listed on the Zurich Stock Exchange, and the Oakbay statement did not give much information about the group, but it did quote its owner, one Amin al-Zarooni, as saying: “Opportunities in mining in SA are extremely attractive and we have been looking for a long time to invest in the Rainbow Nation.
“And once we have bought the business we will, of course, be looking for a black economic empowerment partner. Mining is an excellent growth sector on the continent and with this acquisition, our expansion plan on the African continent kick-starts.”
Oakbay sold its media assets for a combined R450m to Lodidox, a company owned by former government spokesman Mzwanele Manyi, in a vendor-financed deal.
BDLIVE, SA
The company announced that it was selling Tegeta, which consists of Optimum, Koornfontein and Optimum Coal Terminal, to Swiss-based Charles King for R2.97bn.
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| A logo of Oakbay Investments is seen at the entrance of their offices in Sandton. Picture: SIPHIWE SIBEKO |
The Gupta family and its companies have been central to allegations of state capture and their business dealing have come under the spotlight since a tranche of e-mails between members of the family and their associates was leaked.
Earlier this month, Finance Minister Malusi Gigaba announced a forensic investigation into a Tegeta report, which related to the coal supply contracts between Tegeta and Eskom.
The report paints a damning picture of how senior Eskom executives, including Matshela Koko and Anoj Singh, may have pressured Glencore into selling Optimum Colliery, on which Gupta-owned Tegeta Exploration and Resources swooped.
It also details how Eskom showed disdain for its own supply chain processes to aid Tegeta’s audacious bid for Optimum Colliery.
Oakbay said the decision to sell Tegeta was based on preserving jobs.
“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‚” it said in a statement on Wednesday.
“Under new ownership‚ Oakbay believes that the business and its employees will have the bright and prosperous future they deserve.
“The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations.”
It expected the sale to take a year to conclude. "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," it said.
Optimum Coal Terminal‚ Oakbay said, had recently seen a “radical transformation in its fortunes”.
Tegeta's buyer, Charles King is not listed on the Zurich Stock Exchange, and the Oakbay statement did not give much information about the group, but it did quote its owner, one Amin al-Zarooni, as saying: “Opportunities in mining in SA are extremely attractive and we have been looking for a long time to invest in the Rainbow Nation.
“And once we have bought the business we will, of course, be looking for a black economic empowerment partner. Mining is an excellent growth sector on the continent and with this acquisition, our expansion plan on the African continent kick-starts.”
Oakbay sold its media assets for a combined R450m to Lodidox, a company owned by former government spokesman Mzwanele Manyi, in a vendor-financed deal.
BDLIVE, SA
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