Glencore Optimum's Rescuers Sell Mines to Gupta Family's Oakbay
- Oakbay's Tegeta Resources to pay 2.15 billion rand for assets
- Transaction is expected to save 500 jobs at Optimum mine
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Business rescuers for Glencore Plc’s Optimum unit in South Africa reached an agreement to sell its coal assets to a subsidiary of Oakbay Investments Group, which is controlled by the country’s Gupta family, for about 2.15 billion rand ($137 million).
The funds that Oakbay’s Tegeta Exploration & Resources will pay will settle some of Optimum’s 2.55 billion rand of bank debt, business-rescue practitioners Piers Marsden and Peter van den Steen said in an e-mailed statement Friday. Glencore will advance about 400 million rand to settle the debt balance so the transaction can go ahead, it said.