Cape Town - The Gupta-owned Oakbay Investments said on Wednesday it is selling its mining unit Tegeta to Swiss-based Charles King SA.
According to Oakbay, Tegeta was sold for R2.97 billion. The company is owned by the Gupta family and President Jacob Zuma’s son, Duduzane.
Tegeta, which comprises of Optimum, Koornfontein and the Optimum Coal Terminal, has recently encountered a drastic transformation in its fortunes.
The three businesses have emerged from business-rescue under a year ago.
Oakbay has set in motion the below measures in order to salvage their business and workforce:
- Selling Tegeta to the Swiss-based Charles King SA for R2.97 billion.
The sale is subject to guided requirements which are presumed to be closed within 12 months.
- The buyer has to secure employment in the mines by having a minimum of 30% of the shares assigned to a Black Empowerment Partner.
According to Oakbay, the sale will additionally allow the shareholder time to free its name of the so-called "unfounded media allegation".
“The sale of Tegeta represents a further step forward in delivering our strategy of preserving jobs by securing the future of the businesses we have developed and grown. egeta is a strong business and the Charles King company will be an excellent new owner. We wish both of them well for the future," said Acting Chief Executive of Oakbay, Ronica Ragavan.
The sale of the mining unit comes days after the Gupta-owned media companies, news channel, ANN7 and the newspaper, The New Age, were sold.
A company owned by Mzwanele Manyi bought the media agencies.
The Manyi-owned Lodidox bought ANN7 (Infinity Media) for R300m and The New Age (TNA Media) for R150m.
According to Oakbay, the agreement with Manyi will be concluded over the next few weeks, subject to any regulatory requirements. Oakbay has stated the sale was to help preserve the jobs of about 7 500 people who work at the companies.
Reuters and IOL