Thu Sep 1, 2011
* Glencore's biggest target since its listing
* Asian giants hungry for S.African coal
JOHANNESBURG, SEPT 1 - South Africa's Optimum Coal confirmed on Thursday a consortium including a unit of commodity trading giant Glencore , and prominent local politician-turned tycoon Cyril Ramaphosa was interested in buying it for about $1 billion.
The move on Optimum, South Africa's sixth-largest coal producer, is seen as showing Glencore's appetite for deals in volatile equity and commodity markets, which it has said will produce bargains.
"The proposed transaction would include a general offer to the shareholders of Optimum for a cash consideration of 34 rand per share," Optimum said in a statement.
That would value it at around $1 billion and be a premium of 1.25 rand per share on the 32.75 rand its stock price was fetching in early Thursday trading.
Optimum said the consortium includes Piruto B.V., a wholly owned subsidiary of Glencore, and Lexshell 849 Investments Limited, a company owned by Ramaphosa.
Sources last week said Glencore and Ramaphosa were stalking Optimum, and on Monday, the South African company said Piruto B.V. had taken a 14.1 percent stake in it.
This would be Glencore's most significant purchase since its record listing, when it sacrificed its fiercely protected privacy to gain the balance sheet firepower for acquisitions.
Glencore's deep pockets and Ramaphosa's influence would make for a formidable bid that could nullify any opposition arising from shareholders, some of whom may be reluctant to see the trader extend its reach in South Africa.
Optimum, a mid-size producer has export capacity and reserves that make it attractive prey for big foreign companies hoping to capitalise on Indian and Chinese demand.
* Glencore's biggest target since its listing
* Asian giants hungry for S.African coal
JOHANNESBURG, SEPT 1 - South Africa's Optimum Coal confirmed on Thursday a consortium including a unit of commodity trading giant Glencore , and prominent local politician-turned tycoon Cyril Ramaphosa was interested in buying it for about $1 billion.
The move on Optimum, South Africa's sixth-largest coal producer, is seen as showing Glencore's appetite for deals in volatile equity and commodity markets, which it has said will produce bargains.
"The proposed transaction would include a general offer to the shareholders of Optimum for a cash consideration of 34 rand per share," Optimum said in a statement.
That would value it at around $1 billion and be a premium of 1.25 rand per share on the 32.75 rand its stock price was fetching in early Thursday trading.
Optimum said the consortium includes Piruto B.V., a wholly owned subsidiary of Glencore, and Lexshell 849 Investments Limited, a company owned by Ramaphosa.
Sources last week said Glencore and Ramaphosa were stalking Optimum, and on Monday, the South African company said Piruto B.V. had taken a 14.1 percent stake in it.
This would be Glencore's most significant purchase since its record listing, when it sacrificed its fiercely protected privacy to gain the balance sheet firepower for acquisitions.
Glencore's deep pockets and Ramaphosa's influence would make for a formidable bid that could nullify any opposition arising from shareholders, some of whom may be reluctant to see the trader extend its reach in South Africa.
Optimum, a mid-size producer has export capacity and reserves that make it attractive prey for big foreign companies hoping to capitalise on Indian and Chinese demand.
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