July 23, 2017

Tegeta’s share in Richards Bay Coal Terminal sold off

richards-bay-coal

A consortium has made a bid on the Gupta-owned share in the Richards Bay Coal Terminal for an undisclosed sum, subject to the relevant regulatory approvals and other conditions precedent.

In the agreement, the Burgh Group and Vitol have joined forces to acquire Optimum Coal Terminal (OCT) from the Tegeta Group, which is owned by the controversial Gupta family, and in which President Jacob Zuma’s son, Duduzane, has shares.

OCT has a 7,61% shareholding in Richards Bay Coal Terminal (RBCT), South Africa’s leading coal terminal with an annual capacity of 91m tonnes, which it bought for R215bn from Glencore in December. It also owns two coal mines, which are not part of the assets being considered for sale.

The Burgh Group produces 500 000 tonnes of coal a month and expects to more than double that output by mid-2017, while Vitol says buying the rights will strengthen its position in the coal trade in a country that’s a key supplier to Asia. The Guptas announced they would be divesting their South African assets in late August, after leaving the country under a cloud of accusations of state capture and corruption.

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