Glencore International, a FTSE 100 mining company, has acquired a controlling interest in Optimum Coal Holding.
The miner, which already owned a 31.21% stake, purchased a further 36.56% with its local Black Economic Empowerment partner, Cyril Rapmaphosa.
Glencore and its partner are now required to make a mandatory offer to acquire the shares of all shareholders of Optimum. They will offer the remaining shareholders 38 South African Rand per Optimum share (£3.14).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Tor Peterson, director of the Coal/Coke commodity department, said: "Optimum will add to our coal presence in South Africa and will be highly complimentary to our joint venture Shanduka Coal and our investment in Umcebo. South Africa is an important producer to supply the growing Chinese and Indian markets, so we are delighted to add to our business in the country with our partner Cyril Ramaphosa."
NR
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discountUK small caps have been unloved for some time, but a shifting economic environment could give them a boost
