Zuma Son Said to Be Top Shareholder in Firm Buying Optimum
- Tegeta agreed to purchase Optimum for 2.15 billion rand
- Deal agreed after mines minister Zwane met Glencore CEO
South African President Jacob Zuma’s son Duduzane is the biggest individual shareholder in a group that’s acquiring Glencore Plc’s Optimum colliery, a person familiar with the shareholding said. The group includes the Gupta family, whose links with the Zuma family have been criticized by opposition parties.
Tegeta Exploration & Resources Ltd. agreed to buy Optimum for 2.15 billion rand ($140 million) in December after Glencore had placed the mine under administration because it said it couldn’t make a profit due to the terms of a coal supply deal with state power company Eskom Holdings SOC Ltd. Tegeta is 64 percent owned by Mabengela Investments, which in turn is 45 percent owned by Duduzane Zuma, the person said. That makes him the biggest individual shareholder in Optimum, the person said. Rajesh Kumar Gupta has a 25 percent stake in Mabengela, according to the person.