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Bid to stop sale of Optimum an Koornfontein mines

Coal News - Published on Fri, 14 Sep 2018

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Fin24 Swiss-based company Charles King SA’s sole director Amin Al-Zarooni has launched an urgent court bid to stop business rescue practitioners from selling Gupta-owned Optimum and Koornfontein mines. He also wants to stop them from selling any of Tegeta’s assets. Al-Zarooni, a businessman from Dubai with links to the Gupta family, is arguing that a sale of shares agreement he concluded in August 2017 to purchase Tegeta Resources and Energy for ZAR 2.97 billion is still in effect. The business rescue practitioners cancelled the agreement in April this year, after it emerged that Al-Zarooni had not paid the full deposit as outlined in the agreement. Al-Zarooni is refusing to accept the cancellation, saying that any dispute must be determined through arbitration administered by the Arbitration Foundation of South Africa. Al-Zarooni argues that he tried to pay the remaining ZAR 2.3 million but the payment was returned to Charles King SA’s bank account for reasons unknown to him.

Al-Zarooni’s founding affidavit reads “It is instructive that Tegeta’s then-directors waived the payment of the balance within the deadline and in this regard…it was verbally agreed between the respective parties that the shortfall of ZAR 2.3 million would be paid as part of the final balance upon the transfer of the shareholdings. In these circumstances, Charles King was not in breach of the agreement and Tegeta had no right to cancel the agreement."

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Posted By : Rabi Wangkhem on Fri, 14 Sep 2018
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