Johannesburg, South Africa — MININGREVIEW.COM — 24 May 2010 – South African Coal Mining Holdings (SACMH) “’ which is controlled by the Royal Bafokeng “’ says it has received a firm offer from JSW Energy (JSWEL) “’ a group company of Jindal South West (JSW) group “’ for control of its company.
JSWEL is the first independent power producer (IPP) to be set up in the Indian state of Karnataka. It has set up two units of 130 MW each and both units are generating power using Corex gas and coal.
In a statement issued here SACMH said the offer would see JSW Energy lend it funds to enable it to discharge its liability to The Standard Bank of South Africa. JSW Energy would also help to provide new funding to reopen the mine.
Furthermore, the statement added, JSW Energy would also make an offer to acquire a stake in the issued ordinary shares of SACMH, being all the shares save for those held by Royal Bafokeng Capital and Mainsail Trading.
“SACMH will be placed on its road to recovery once it resumes mining operations during May or June 2010, and JSW will support SACMH in this regard,” the company said in a statement announcing the terms of the offer. “It is expected that SACMH will be operating the mines at full production capacity by the end of December 2010,” it added.
JSW said its offer, if implemented, could result in the lifting of SACMH’s suspension by the JSE and, once SACMH had been restored to full health, it could unlock value for shareholders.