PRETORIA (dpa-AFX) - South African mining group Optimum Coal, in which Swiss commodities trader Glencore International Plc (GLEN.L, GLNCY.PK, GLCNF.PK) is reported to be interested, Friday said its board of directors has received unsolicited, non-binding expressions of interest from third parties to acquire a controlling interest in the company.
Optimum operates one of the biggest opencast mines in South Africa. It is the sixth largest producer of thermal coal in southern Africa and is also South Africa's fourth largest coal exporter with a significant shareholding of the Richards Bay Coal Terminal.
The miner has received takeover interest, as cash-rich firms look to take advantage of a fall in share prices in the sector. It was reported earlier that Glencore is interested in the firm.
In an announcement made on August 17, Optimum had said, 'Shareholders of the Company are advised that there are circumstances in relation to the Company, which could have a material effect on the price of the Company's shares. Accordingly shareholders are advised to exercise caution when dealing in their shares until a full announcement is made.'
Optimum said today that there is currently no certainty that the company would receive a firm intention to make an offer from any party and advised its shareholders to exercise caution when dealing in Optimum's securities.
The company's stock was higher by 5 percent at 31.5 rand in Johannesberg.
Copyright RTT News/dpa-AFX
© 2011 AFX News
