HomeEnergy MineralsJSW seizes control of SACMH

JSW seizes control of SACMH

Indian conglomerate
JSW “’ likely new
owner of SACMH
Johannesburg, South Africa — MININGREVIEW.COM — 19 April 2010 – Indian conglomerate JSW appears to have outflanked rival bidders for control of suspended coal group SA Coal Mining Holdings (SACMH).

Mining mx.com quotes a SENS announcement as disclosing that JSW had struck a R85 million agreement with various entities associated with the Royal Bafokeng Tribe and Strider Holdings, which are the major shareholders in SACMH. The proposed deal will see JSW – via complicated control structures “’ buying enough shares from the Royal Bafokeng and Strider to snatch control of SACMH, it adds.

The announcement says that essentially the proposed deal will see 285 million shares at 30c/share passing into the hands of JSW “’ a development that would signal a change of control at SACMH.

Miningmx.com reports that in recent weeks SACMH has been subject to two other bids – one from Cyril Ramaphosa’s Shanduka (a deal initially preferred by certain SACMH board members), and another from JSE-listed coal junior, Wescoal.

The JSW deal, if approved, would require the Indian conglomerate to extend a similar offer at 30c/share to minority shareholders of SACMH.

The JSE told shareholders that SACMH shares had been suspended with effect from 4 May 2009 because the company had not filed a reviewed provisional report within a stipulated three-month period. The shares were last traded at 41 cents, off the year-low of 20 cents but far away from the high of 500 cents.