Warren Thompson
2 minute read
24 Aug 2017
7:37 am

A multimillion-rand pay day for the Zuma(s)

Warren Thompson

Oh, and the Guptas will make a few shekels too.

President Jacob Zuma. Picture: Supplied/Moneyweb

The Zuma family stand to benefit handsomely from the Guptas’ decision to sell Tegeta Exploration and Resources for R2.97 billion to the unknown Swiss-based company Charles King SA.

Tegeta owns the Optimum and Koornfontein collieries, as well as the Optimum Coal Terminal company.

According to the latest available information, Duduzane Zuma, through his stake in Mabengela Investments, holds a 28.5% stake in Tegeta. If it is assumed that all the shareholders in Tegeta have agreed to the sale of their shares for a collective R2.97 billion, Duduzane, and the Zuma family by extension, could pocket as much as R846 million.

Tegeta shareholding pre-Optimum acquisition (April 2016)

Source: Per Bloomberg quoting Oakbay

Source: Per Bloomberg quoting Oakbay

This changed slightly post the Optimum acquisition. We know for a fact that Oakbay owns 29% of Tegeta because they told us that at the presentation of the Oakbay results last year September.

We think that the shareholding of the balance may have changed in favour of Salim Essa post the acquisition of Optimum, because according to confidential documents in Moneyweb’s possession (which will be examined in length in future articles), an Essa company provided deposits amounting to a staggering R885 million from which the Bank of Baroda then lent Tegeta the R2.15 billion with which to buy Optimum.

According to an Oakbay statement: “Mr Amin Al Zarooni is a leading businessman in the United Arab Emirates and a highly respected and active participant in global Private Equity markets.  As such he is involved with various commodity businesses around the world.  Mr Zarooni’s businesses include: Arep Ville Abu Dhabi (joint venture Arep Group France); Egis Emirates Abu Dhabi (joint venture Egis Industries France); Gimaex – One Seven (joint venture Gimaex International); Golden Triangle Investment; Nepteam Middle East (joint venture Nepteam France); Jaffar Al Zarooni Real Estate; Triangle Business Connection.

Charles King SA itself is a Special Purpose Vehicle acquired by Mr Zarooni to facilitate further investments like Tegeta’s Optimum Coal, Koornfontein and Optimum Coal Terminal acquisition.”

“The sale of Tegeta represents a further step forward in delivering our strategy of preserving jobs by securing the future of the businesses we have developed and grown.  Tegeta is a strong business and the Charles King company will be an excellent new owner.  We wish both of them well for the future,” said acting CEO of Oakbay Investments, Ronica Ragavan.

The sale of Tegeta in which Oakbay holds a 29% share follows hot on the heels of the sale of ANN7 and The New Age to a company controlled by Jimmy Manyi. 29% of the sale price equates to R861 million.

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