Johannesburg - A company controlled by the Gupta family and South African President Jacob Zuma’s son completed all obligations to buy Glencore’s Optimum Coal unit, according to the administrator of the business-rescue team.
Credit: INDEPENDENT MEDIA
President Jacob Zuma's son, Duduzane Zuma (left), and Ajay Gupta share a private moment at the launch of ANN7 in Sandton in August 2013. File picture: Chris Collingridge, Independent MediaTegeta Exploration & Resources, a company in which both Duduzane Zuma and members of the Gupta family have indirect interests, paid the R2.15 billion ($148 million) purchase price into an escrow account, Louise Brugman, a spokeswoman for Piers Marsden and Peter van den Steen, the practitioners of the so-called business rescue, said by phone. The transaction will become effective on Friday, they said in a statement.
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Glencore put Optimum into bankruptcy protection after the country’s state power utility refused to amend an unprofitable coal-supply contract and reduce a R2-billion fine.
The conclusion of the transaction will terminate the business-rescue proceedings of Optimum Holdings, while Optimum Coal Mine “will operate as a going concern under the operational control of the business-rescue practitioners” until the mine is no longer financially distressed, Marsden and Van den Steen said in the statement.
Oakbay Investments Chief Executive officer Nazeem Howa didn’t immediately respond to a call and a message seeking comment.
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