- South African president Zuma's son has a stake in company
- Tegeta pays purchase price into escrow account to secure deal
A company controlled by the Gupta family and South African President Jacob Zuma’s son completed all obligations to buy Glencore Plc’s Optimum Coal unit, according to the administrator of the business-rescue team.
Tegeta Exploration & Resources Ltd., a company in which both Duduzane Zuma and members of the Gupta family have indirect interests, paid the 2.15 billion-rand ($148 million) purchase price into an escrow account, Louise Brugman, a spokeswoman for Piers Marsden and Peter van den Steen, the practitioners of the so-called business rescue, said by phone. The transaction will become effective on Friday, they said in a statement.
Glencore put Optimum into bankruptcy protection after the country’s state power utility refused to amend an unprofitable coal-supply contract and reduce a 2 billion-rand fine.
The conclusion of the transaction will terminate the business-rescue proceedings of Optimum Holdings, while Optimum Coal Mine “will operate as a going concern under the operational control of the business-rescue practitioners” until the mine is no longer financially distressed, Marsden and Van den Steen said in the statement.
Oakbay Investments Chief Executive officer Nazeem Howa didn’t immediately respond to a call and a message seeking comment.