Gupta subsidiary sells stake in RBCT
'The RBCT board is following due process with regards to this matter'
TEGETA Exploration & Resources, a subsidiary of Gupta family-controlled Oakbay Investments, is selling its 7.5% optimal coal stake in the Richards Bay Coal Terminal.
RBCT confirmed there is a ‘proposed transaction’ between Tegeta and international coal trading firm Vitol, with the export allocation reportedly on the table for around $250-million (R3.6-billion).
‘The RBCT board is following due process with regards to this matter,’ was all RBCT stated as response.
Tegeta only sealed their R2.1-billion purchase for the investment in April this year after mining giant Glencore put the Optimum mine and its holding company into business rescue.
Glencore at the time was losing more than R3-million a day supplying coal to Eskom’s Hendrina power station in a 30-year-contract, which the state-owned power utility was unwilling to renegotiate.
The Guptas recently stated it is planning to dispose of all stakes it holds in South African businesses before the end of the year.
If the export quota is sold for R3.6-billion, it would leave Tegeta with a R1.5-billion profit.
But nothing is officially set in stone, as RBCT is believed to hold pre-emptive rights to use Optimum’s export allocation in the event that Optimum is not able to supply the coal from its own operations.
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