23/08/2017 09:51 SAST | Updated 23/08/2017 09:51 SAST

Gupta Family Sells Tegeta Firm, The Same Firm Under Investigation In The State Capture Report

They sold Tegeta Exploration and Resources to Swiss-based Charles King SA for R2.97bn.

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JOHANNESBURG, SOUTH AFRICA - (Photo by Gallo Images/Business Day/Martin Rhodes)

Gupta-owned Oakbay Investments announced on Wednesday that it had sold Tegeta Exploration and Resources to Swiss-based Charles King SA for R2.97bn, according to a report by Fin24.

President Jacob Zuma's son Duduzane is a shareholder of Tegeta.

In its statement, Oakbay said that Tegeta had "recently seen a radical transformation in its fortunes".

The sale of Tegeta raised eyebrows as this was the same firm that was under investigation by former Public Protector Thuli Madonsela. In her report on State Capture report, it was alleged the firm was involved irregularities with Eskom.

"The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations."Oakbay Investments

Oakbay said the sale would be finalised in the coming months.

Charles King SA owner Amin Al Zarooni said the mining sector showed excellent growth on the continent and with the acquisition of the firm it would expand the company's plans in Africa.

"Opportunities in mining in South Africa are extremely attractive and we have been looking for a long time to invest in the Rainbow Nation. And once we have bought the business we will, of course, be looking for a Black Economic Empowerment Partner," Zarooni is quoted as saying.

Following the sale of ANN7 and The New Age to Mzwanele Manyi earlier this week for a combined R450 million, Oakbay stressed the reason was so the family could focus on clearing its name.

Read: The Guptas Want To Clear Their Name By Selling ANN7 And The New Age To Mzwanele Manyi

In Its statement on Wednesday, Oakbay further said: "Under new ownership, Oakbay believes that the business and its employees will have the bright and prosperous future they deserve." -- Fin24