Sep11, 2011
* Proposed price raised from initial offer of 34 rand/shr
* Change follows Glencore purchase of more shares in Optimum
* Alternative buyer withdraws interest in company
JOHANNESBURG, Sept 9 (Reuters) - Optimum Coal said on Friday that should an offer be made for the company by a consortium including trader Glencore and a vehicle of politician turned businessman Cyril Ramaphosa, the price would not be lower than 38 rand per share.
A consortium including a Glencore subsidiary, Piruto BV, and Ramaphosa's Lexshell 849 confirmed on Sept. 1 that it was interested in buying a controlling stake in South Africa's sixth-biggest coal miner, deemed attractive due to its reserves and access to the Richards Bay Coal Terminal (RBCT).
Optimum said the change came after a member of the consortium bought additional shares in the company.
Glencore said on Thursday it had raised its stake in the takeover target to 25.8 percent after it bought about 2.5 million shares at a price of 37.99 rand a share. The price is more than the 34 rand per share the consortium had so far publicly offered.
"The board has been informed by the consortium that if the proposed offer is made within a period of 6 months from 6 September 2011, the offer consideration will not be lower than 38.00 rand per Optimum share," the company said in a statement.
Optimum also said an alternative party, which was mentioned in an announcement earlier this month, had withdrawn its interest in acquiring a controlling stake in the coal producer.
The 38 rand offer would value the company at 9.57 billion rand ($1.34 billion).
Optimum, a mid-size producer with large export capacity at Richards Bay Coal Terminal and reserves, attracted keen buying interest from local and international companies since BHP Billiton originally put the mine up for sale.
South African coal is a key source of supply to both the European and Asian markets, particularly India - South Africa ships around 30 percent of its coal to India and increasingly, to China.
The acquisition would give Glencore access to two operating assets, the Optimum Collieries and Koornfontein Mines, as well as 8 million tons of coal export entitlements from RBCT.
Shares in Optimum, up 42.4 percent so far this year, were flat at 37.50 rand by 1256 GMT, compared with a 0.59 percent fall in Johannesburg's All-Share index .
(sourced Reuters)
* Proposed price raised from initial offer of 34 rand/shr
* Change follows Glencore purchase of more shares in Optimum
* Alternative buyer withdraws interest in company
JOHANNESBURG, Sept 9 (Reuters) - Optimum Coal said on Friday that should an offer be made for the company by a consortium including trader Glencore and a vehicle of politician turned businessman Cyril Ramaphosa, the price would not be lower than 38 rand per share.
A consortium including a Glencore subsidiary, Piruto BV, and Ramaphosa's Lexshell 849 confirmed on Sept. 1 that it was interested in buying a controlling stake in South Africa's sixth-biggest coal miner, deemed attractive due to its reserves and access to the Richards Bay Coal Terminal (RBCT).
Optimum said the change came after a member of the consortium bought additional shares in the company.
Glencore said on Thursday it had raised its stake in the takeover target to 25.8 percent after it bought about 2.5 million shares at a price of 37.99 rand a share. The price is more than the 34 rand per share the consortium had so far publicly offered.
"The board has been informed by the consortium that if the proposed offer is made within a period of 6 months from 6 September 2011, the offer consideration will not be lower than 38.00 rand per Optimum share," the company said in a statement.
Optimum also said an alternative party, which was mentioned in an announcement earlier this month, had withdrawn its interest in acquiring a controlling stake in the coal producer.
The 38 rand offer would value the company at 9.57 billion rand ($1.34 billion).
Optimum, a mid-size producer with large export capacity at Richards Bay Coal Terminal and reserves, attracted keen buying interest from local and international companies since BHP Billiton originally put the mine up for sale.
South African coal is a key source of supply to both the European and Asian markets, particularly India - South Africa ships around 30 percent of its coal to India and increasingly, to China.
The acquisition would give Glencore access to two operating assets, the Optimum Collieries and Koornfontein Mines, as well as 8 million tons of coal export entitlements from RBCT.
Shares in Optimum, up 42.4 percent so far this year, were flat at 37.50 rand by 1256 GMT, compared with a 0.59 percent fall in Johannesburg's All-Share index .
(sourced Reuters)
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