[miningmx.com] — OPTIMUM Coal said on Monday that a unit of Glencore, the world’s largest commodity trader, had bought a 14.1% stake in it.
The announcement comes after Optimum, South Africa’s sixth-largest coal producer, confirmed on Friday that it had received takeover approaches.
“A consortium comprising Piruto B.V., a wholly owned subsidiary of Glencore International AG, had as at the close of business on Friday, 26 August 2011, acquired ordinary shares and as a result now holds a beneficial interest of 14.1% in Optimum Coal,” Optimum said in a statement.
Optimum’s share price was up 1.3% at R31.91, extending its Friday gains of around 5%.
Sources close to the deal said late on Thursday that the Swiss-based trader plans to bid for a majority stake in Optimum with its politician-turned-businessman partner Cyril Ramaphosa.
It is the Swiss-based trader’s largest takeover bid since its May stock market listing.
Glencore’s deep pockets and Ramaphosa’s influence would make for a formidable bid that could nullify any opposition from unions or shareholders, some of whom may be reluctant to see the trader extend its reach in South Africa.
The sources told Reuters on Thursday that Glencore and Ramaphosa were talking to Optimum shareholders.
Shareholders in Optimum – including Mandla Tshabalala of Mobu Resources, a small investor – confirmed they had received an offer from the commodities giant and Ramaphosa, whose unlisted Shanduka Resources owns 30% of Shanduka Coal, a venture with Glencore.
Shanduka Coal has until recently been Glencore’s vehicle for investment in coal mining in South Africa.
The move on Optimum illustrates Glencore’s appetite for deals in the volatile equity and commodity markets, which it has said will throw up bargains.
