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JSW divests 26% stake in South African Coal Mining Holdings

JSW Energy has divested 26 per cent stake in its Johannesburg Stock Exchange listed subsidiary South African Coal Mining Holdings Ltd (SACMH) to Comogen (Pty) Limited, the company said in a stock market disclosure.

JSW held stake in this firm through its step down subsidiary JSW Energy Natural Resources South Africa (Pty) Ltd.

Post this, the company's holding in SACMH came down to 67.25 per cent.

The divestment is a part of the black economic empowerment requirements mandated by the department of mineral resources (DMR). This requires a certain portion of a firm in the country to be owned by locals as part of racial affirmative action plan.

In March 2011, JSW Energy Ltd through its subsidiary JSW Energy Natural Resources Mauritius Ltd, had acquired 59.49 per cent stake in SACMH for an undisclosed amount. It bought 49.80 per cent stake through share purchase agreement from Royal Bafokeng Capital Pty Ltd and made an open offer to acquire further 30.37 per cent stake in the company. However, it managed to acquire 9.69 per cent more stake in the company.

In December the same year it acquire an additional 33.78 per cent stake in SACMH, post which it held 93.27 per cent stake in South African coal mining firm.

SACMH, a coal-producing company, specialises in low-seam open cast and underground coal mining.

Founded in 1994 and led by Sajjan Jindal, JSW Energy offers mining, power plant equipment manufacturing and trading of electricity. Last year, the company struck a deal to buy two hydroelectric projects of Jaiprakash  Power Ventures Ltd (JPVL) in Himachal Pradesh at an enterprise value of around Rs 9,700 crore.

source: http://www.vccircle.com