Glencore had announced an expression of interest in a controlling stake that valued Optimum at R34 per share, offer to buy remaining shares will be made
Fri, Nov18, 2011
A CONSORTIUM of Glencore and Cyril Ramaphosa’s Lexshell will make a mandatory offer to Optimum Coal shareholders next year after it agreed to buy shares in the thermal coal company, lifting its stake to 65,14%, Optimum said yesterday.
The offer to buy the remaining shares in Optimum it does not own will be made at not less than R38 per share. In September, Glencore announced an expression of interest to acquire a controlling interest in Optimum with Mr Ramaphosa in a deal that valued Optimum at R34 per share.
The consortium told Optimum’s board that it was moving away from a general offer to buy the company to making a mandatory offer for the shares it does not own once it has regulatory approval to do so in the first quarter of next year.
"The consortium informed the board that it believes that it will be preferable to make the mandatory offer as opposed to the general offer, because the mandatory offer will be unconditional and capable of immediate implementation once accepted by Optimum shareholders," Optimum said.
Glencore, the world’s largest commodity trader, will assume marketing rights for Optimum’s coal after the consortium agreed to buy a 6,45% stake in Optimum held by Mercuria Energy Asset Management, which had the marketing contract.
This should take place from the middle of next year.
"Not only does Glencore have a strong balance sheet, but we believe the Ramaphosa interests will have benefited from the sale of Shanduka Resources’ Assore stake," said Imara SP Reid’s Steve Meintjes, referring to the R2,6bn raised by Shanduka from the sale of its 11,7% stake in Assore, a JSE-listed manganese, chrome and iron ore miner.
"We believe this deal is therefore beneficial for the company as it introduces shareholders with strong balance sheets capable of funding the available organic and acquisition growth opportunities.
sourced BusinessDay
Fri, Nov18, 2011
A CONSORTIUM of Glencore and Cyril Ramaphosa’s Lexshell will make a mandatory offer to Optimum Coal shareholders next year after it agreed to buy shares in the thermal coal company, lifting its stake to 65,14%, Optimum said yesterday.
The offer to buy the remaining shares in Optimum it does not own will be made at not less than R38 per share. In September, Glencore announced an expression of interest to acquire a controlling interest in Optimum with Mr Ramaphosa in a deal that valued Optimum at R34 per share.
The consortium told Optimum’s board that it was moving away from a general offer to buy the company to making a mandatory offer for the shares it does not own once it has regulatory approval to do so in the first quarter of next year.
"The consortium informed the board that it believes that it will be preferable to make the mandatory offer as opposed to the general offer, because the mandatory offer will be unconditional and capable of immediate implementation once accepted by Optimum shareholders," Optimum said.
Glencore, the world’s largest commodity trader, will assume marketing rights for Optimum’s coal after the consortium agreed to buy a 6,45% stake in Optimum held by Mercuria Energy Asset Management, which had the marketing contract.
This should take place from the middle of next year.
"Not only does Glencore have a strong balance sheet, but we believe the Ramaphosa interests will have benefited from the sale of Shanduka Resources’ Assore stake," said Imara SP Reid’s Steve Meintjes, referring to the R2,6bn raised by Shanduka from the sale of its 11,7% stake in Assore, a JSE-listed manganese, chrome and iron ore miner.
"We believe this deal is therefore beneficial for the company as it introduces shareholders with strong balance sheets capable of funding the available organic and acquisition growth opportunities.
sourced BusinessDay
Posts
