[miningmx.com] — CHRISTMAS came three weeks early for Optimum Coal Holdings directors, Doug Gain and namesake, Peter, as well as colleague Tom Borman, who is not to be confused with former Nedbank boss, Tom Boardman.
The three directors today sold a combined 5.8 million shares in Optimum Coal, presumably to suitor and long-time company stalker, Glencore International, for a total value of R221m between them.
All the shares were sold at R38 each, the level at which Glencore said it would not buy below in its attempt to seize control of the company. Glencore is yet to announce a formal takeover, however.
Peter Gain, a non-executive director of Optimum Coal, booked R91.2m in gross profit after selling 2.4 million shares, while financial director, Douglas Gain, grossed R28.7m of which a portion (R8.8m) comprised share options carrying an R11.60/share strike price.
The biggest beneficiary from this round of Optimum Coal share sales, however, was non-executive director Borman who sold 2.6 million shares for R98.8m.
Peter Gain, formerly a member of Mzi Khumalo’s Metallon Corporation, was a founder member of Warrior Coal which helped complete the purchase of Optimum Collieries from BHP Billiton in 2008.
As for Doug Gain, he previously founded niche diamond cutting business, Calibrated Diamonds, which was sold to Petra Diamonds in 2006. Borman was previously at BHP Billiton for 11 years prior to joining Optimum Coal’s board.
Optimum Coal is a black-controlled mining company, but the benefits accruing to white businessmen is not uncommon post the promulgation of the MPRDA in 2004.
In fact, one of South Africa’s most celebrated black economic empowerment companies in the mining sector was Mvelaphanda Resources whose CEO, Pine Pienaar, sold shares totalling R62.9m in 2009.
