HomeCoalTegeta offer for Optimum Coal considered only credible bid

Tegeta offer for Optimum Coal considered only credible bid

Optimum Coal Holdings business rescue practitioners (BRP) have issued a statement confirming that Endulwini Mining did make a R1.5 billion purchase offer for Optimum mine last year but only Tegeta’s offer was considered credible.

The statement, made by BRP Piers Marsden and Peter van den Steen, is in response to the Business Report articles, entitled “Glencore faces court over the Gupta deal” from 1 February 2016 and “Commission set to probe Gupta deal” from 2 February 2016. The articles include a number of factual inaccuracies.

The articles incorrectly state that a firm and later in the text ‘binding’ offer to purchase Optimum mine for R3.17 billion ($200 million) was made by Endulwini Mining on 5 August 2015.

Endulwini’s chairman, Sipho Dube made an indicative offer on 5 August 2015 but the offer was for R1.5 billion and not $200 million.  Moreover, the offer was not firm or binding. It was conditional on funding and due diligence.

The offer did not include any commitments regarding an “equity share scheme”.  In sum, the BRPs did not believe that the offer from Dube was credible and had any real prospect of implementation.

The BRPs reiterate that their duty was to develop a business rescue plan that optimised value for all affected persons and was reasonably capable of implementation.  The BRPs considered all viable and credible options available to them and concluded that the offer from Tegeta provides the most compelling value for all stakeholders.

The Tegata offer will be included in a business rescue plan that will need to be approved by creditors of Optimum Coal Holdings in accordance with the Companies Act.  The BRPs have consulted with all affected persons throughout the business rescue and will continue to do so going forward.

Any court action, as referred to in Business Report article entitled, “Glencore faces court over Gupta deal” would be without merit and would be vigorously defended.

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