Utility not informed officially of Oakbay farewell

OAKBAY Investments had yet to formally inform Eskom, its biggest customer for coal, of the family’s plans to sell its local assets before the end of the year, Eskom spokesman Khulu Phasiwe said yesterday.

Phasiwe said the power utility had “noted” the Oakbay announcement. “But we still await communication from them on the matter,” he said.

He said a change of ownership in the Oakbay-owned mines supplying coal to Eskom was unlikely to affect coal supply as Oakbay’s Tegeta Exploration and Resources supplied less than 5 percent of the utility’s total requirements.

The Guptas said last weekend that they would sell their shares in their South African companies, including coal mines supplying Eskom.

The family said it was already holding discussions with several prospective buyers.

Shares in Oakbay Resources fell more than 10 percent in the course of yesterday after the Gupta family, which controls the firm’s holding company, said at the weekend that they would sell their local businesses. The shares then recovered and closed unchanged on the JSE at R20.95. – Siseko Njobeni