Status of appointment of a director to represent minority shareholders on the ZCCM-IH Board.
The company has been in discussions with the Government of the Republic of Zambia (GRZ) over loans that ZCCM-IH owes GRZ amounting to K2,139 billion as reflected in the 2011 Annual Report. Recently GRZ accepted proposals to convert all or part of the loans to equity through a rights issue.
Following the impending debt-equity conversion via a rights issue referred to above, the Board of ZCCM-IH resolved that the appointment of a director to represent minority shareholders on the ZCCM-IH Board be deferred awaiting the conclusion of this transaction and further consultation with GRZ. Shareholders are therefore informed that this matter will await the completion of consultations with GRZ concerning the GRZ debt-equity conversion via a rights issue.
By Order of the Board