Oakbay sells Tegeta

In the second sale of its businesses this week, Gupta-owned Oakbay Investments has announced that is has sold Tegeta Exploration and Resources to Swiss-based Charles King SA. The deal has a R2.97 billion price tag.

Tegeta owns Optimum Coal, Koornfontein and the Optimum Coal Terminal. Tegeta bought Optimum from Glencore in 2016 for R2.15 billion.

Oakbay said in a statement:

"Emerging from business-rescue less than a year ago, the three businesses are now set on a sustainable and profitable trajectory. 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. Under new ownership, Oakbay believes that the business and its employees will have the bright and prosperous future they deserve."

Oakbay has stipulated that the purchaser safeguards employment in the mines, as well as that it has a minimum of 30 percent of the shares allocated to a black empowerment partner.

The sale is still subject to regulatory requirements and the fulfilment of the conditions in the agreement, which are expected to be concluded within the next year.