Oakbay sells interest in Tegeta
OAKBAY Investments, which is owned by the Gupta family, said it had sold its interest in Tegeta Exploration and Resources to Swiss-based Charles King for R2.97 billion in a bid “to save employees’ jobs”.
On Monday, former government spokesman Mzwanele Jimmy Manyi reached an agreement with the Gupta family to buy their television news channel, ANN7, and The New Age newspaper for R450 million through vendor financing.
Tegeta, which comprises Optimum and Koornfontein collieries and Optimum Coal Terminal, is under scrutiny after Finance Minister Malusi Gigaba ordered National Treasury to conduct a forensic investigation into its coal contract with Eskom.
The sale of Tegeta, which is owned by President Jacob Zuma’s son Duduzane and the Gupta family, is subject to regulatory requirements and the fulfilment of conditions in the agreement.
Oakbay chief executive Ronica Ragavan said the sale was part of the commitment to preserve jobs, provide certainty to more than 7 500 employees and safeguard the value of the business.
Ragavan said the sale would also allow the Guptas time to focus on clearing their name in the face of state capture allegations.
“The sale of Tegeta represents a further step forward in delivering our strategy of preserving jobs by securing the future of the business we have developed and grown,” Ragavan said. “Tegeta is a strong business, and the Charles King company will be an excellent owner.”
Charles King owner Amin Al Zarooni said South African mining opportunities were an “extremely attractive” proposition, and his company had been looking to invest in the country for a long time.
“Once we have bought the business, we will be looking for a black economic empowerment partner,” Al Zarooni said.
“Mining is an excellent growth sector on the continent, and with this acquisition our expansion plans on the African continent kick-start.” – ANA