Shanduka Group has made a cash payment for an increase in its shareholding in Shanduka Coal from 30 to more than 50 percent, the remaining shares are held by Swiss-based commodities trading giant Glencore.
In addition, the group will transfer its 30 percent shareholding in Kangra Coal to Shanduka Coal.
According to the group’s Chief Executive Officer, Phuti Mahanyele, the deal is part of the Shanduka Group’s aim of increasing its coal exposure.
“Our view is that our continued partnership with Glencore serves as an advantage, in which both entities will have a hands-on approach to the business by sharing operational and technical expertise,” Ms Mahanyele said.
However, she refused to disclose the value of the transaction, but she mentioned that funds for the deal were raised from the profit the group generated from 2011 sale of the group’s 11.8 percent shareholding in Assore – a Johannesburg Stock Exchange-listed manganese and iron miner.
In addition to the deal, the group, the group is planning to develop other coal projects in Mpumalanga, towards which Shanduka Group has earmarked funds.
Shanduka Group was formed by politician-turned-businessman Cyril Ramaphosa, it has a diversified investment portfolio spanning resources‚ energy, financial services‚ property‚ industries, food and beverages.