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JSW acquires control of South African coal firm

JSW acquires control of South African coal firm
PTI
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First Published: Mon, Apr 19 2010. 02 31 PM IST
Updated: Mon, Apr 19 2010. 02 31 PM IST
Johannesburg: Indian investment company JSW has beaten two South African bidders to acquire a majority stake in South African Coal Mining Holdings (SACMH) at a price of 85.4 million rand (approximately Rs51.16 crore).
JSW upped its earlier offer of 25 cents per share to 30 cents to clinch the deal, in the face of stiff competition from Shanduka Coal and Wescoal, both South African entities who had made offers to buy out SACMH.
Shareholders had initially supported the Shanduka offer amid unusual interest last month to acquire SACMH, started in 2007 by the Royal Bafokeng Nation to exploit the mineral wealth of its traditional land. JSW’s offer at the time was the lowest of the three.
SACMH said in statement that JSW would now acquire a stake of about 63%, currently held by its affiliates Royal Bafokeng Capital and Mainsail Trading 55, for 30 cents per share.
Shareholders were also advised that a similar offer would be made to the minority shareholders of SACMH shortly. The Industrial Development Bank of India (IDBI) has provided written confirmation to the Securities Regulation Panel that the necessary resources are available to JSW to satisfy the purchase consideration necessary for acquiring all of the shares of the minorities in SACMH. Such written confirmation from IDBI will be replaced shortly with a bank guarantee from a South African Bank.
SACMH is a fully-fledged South African coal producer delivering coal to parastatal electricity supplier Eskom and the export market through the Richards Bay Coal Terminal.
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First Published: Mon, Apr 19 2010. 02 31 PM IST