Reuters quoted investors said independent directors at South Africa Optimum Coal are reviewing an expression of interest from Glencore and its local partner and share sales made to the suitors despite the absence of a formal bid.
Glencore, the world largest diversified commodities trader has been buying stock in OCH and earlier this month said it aimed to take a controlling stake in South Africa sixth largest coal producer alongside its partner politician turned-businessman Ms Cyril Ramaphosa. They have yet to make a formal offer.
Some investors expressed concerns that shares were sold to the suitors before the expression of interest was revealed. The deal would be Glencore most significant since its record share listing in May.
One shareholder said "The situation is still very fluid, adding it was unclear when the board would conclude the review and whether Glencore would in fact make a full bid and whether it would face political opposition.”
The independent board is charged with protecting the interests of all shareholders especially the community and employee trusts that own about 20% in the company.
An OCH spokesman said "It is often the case that an 'independent board' is set up to consider specific processes and decision making. The spokesman said there was no deadline for the board review particularly since there had been no firm offer.”
According to some shareholders to date, Glencore has com
pleted the purchase of 25.8% of OCH's shares but has options to buy more at least 43% and as much as 49%.
(Sourced from steelguru.com)
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