Picture Provided : Twitter

In The News South Africa

Gupta-owned Oakbay Investments sells Tegeta mines for R2.97bln

JOHANNESBURG, August 23 – Oakbay Investments, an investment company owned by the controversial Gupta family, announced on Wednesday that it had sold its interest in Tegeta Exploration and Resources to the Swiss-based Charles King SA for R2.97 billion in a bid “to save employees’ jobs”.

 

This comes as former government spokesman Mzwanele Jimmy Manyi reached an agreement with the Gupta family on Monday to buy their television news channel ANN7 and The New Age newspaper for R450 million through vendor financing.

 

Tegeta, comprising of Optimum, Koornfontein, and Optimum Coal Terminal, is under scrutiny after Finance Minister Malusi Gigaba ordered National Treasury to do a forensic probe 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 fulfilment of conditions in the agreement which is expected to be completed within 12 months.

 

Oakbay chief executive, Ronica Ragavan, said that the sale was part of the commitment to preserve jobs, provide certainty to more than 7,500 employees throughout the group and to safeguard the value of the business.

 

Ragavan said the sale would also allow the Guptas the time to focus on clearing their name in the face of mounting 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. We wish both of them well for the future.”

 

Charles King owner, Amin Al Zarooni, said that South African mining opportunities were an “extremely attractive” proposition and that his company had been looking for a long time to invest in the country.

 

“And once we have bought the business we will, of course, 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 starts.”

 

Furthermore, The Department of Mineral Resources (DMR) has welcomed the sale of Tegeta Exploration and Resources by Gupta-owned Oakbay Investments to foreign-owned company for close to R3 billion.

 

This comes after Oakbay Investments announced on Wednesday that it had agreed to sell its interest in Tegeta to the little-known Swiss-based Charles King SA for R2.97 billion in a bid “to save employees’ jobs”.

 

Tegeta, comprising of Optimum, Koornfontein, and Optimum Coal Terminal, is under scrutiny after Finance Minister Malusi Gigaba ordered National Treasury to do a forensic probe 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 fulfilment of conditions in the agreement which is expected to be completed within 12 months.

 

DMR said  in a statement that it had been duly informed by Oakbay of the effective sale and welcomed the undertaking to save employees’ jobs in Tegeta’s various operations.

 

“The department continues to work with all stakeholders on the stability and sustainability of the industry, and welcomes all initiatives by current and potential investors to curb job losses,” DMR said.

 

“The purchaser has committed to a minimum level of 30 percent BEE compliance. The transaction will be concluded in line with provisions in the Mineral and Petroleum Resources Development Act.”

 

Charles King owner, Amin Al Zarooni, said that South African mining opportunities were an “extremely attractive” proposition and that his company had been looking for a long time to invest in the country.

 

“And once we have bought the business we will, of course, be looking for a Black Economic Empowerment partner,” Al Zarooni said.

 

– African News Agency (ANA)

Leave a Reply

Your email address will not be published. Required fields are marked *