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ZCCM-IH shares unbundled

ZAMBIAN public shareholders have bought 11,792,337 shares out of the 27,961,237 Class B shares advertised by the ZCCM-IH this year.

In the 2015 National Budget address delivered in October 2014, the Government announced intention to sell all its Class B shares held in ZCCM-IH to members of the public.

As at October 10, 2014, the Government held 87.5 per cent of shareholding in ZCCM-IH through the minister of Finance, made up of 96,926,966 as Class A shares, representing 60.3 per cent shareholding in ZCCM-IH and 43,811,866 Class B shares, representing 27.2 per cent shareholding in ZCCM-IH.

The primary motivation for the sale down of the GRZ B shares held in ZCCM-IH was because Lusaka Stock Exchange (LuSE) listing requirements stipulate that no single shareholder should control more than 75 per cent of the equity in any company.

This is to ensure that more of the citizens participate in the capital markets.

To comply with the listing requirements, the Government would reduce its shareholding in ZCCM Investments Holdings Plc to 60 per cent from 87 per cent.
The 27 per cent shares were to be sold to Zambian citizens as a way of entrenching economic independence of the people.

In this regard, ZCCM-IH management was mandated by the Government, through the minister of Finance, to sell all the Class B shares held by the Government to the Zambian public and eligible Zambian institutions.

The process of selling the 43,811,868 Class B shares initially held by GRZ has begun and to date a total of 15,850,631 shares, representing 9.9 per cent of the shareholding in ZCCM-IH, have been sold to the National Pension Scheme Authority (NAPSA).

On July 30, 2015, ZCCM-IH issued an Information Supplement regarding the GRZ Preferential Secondary Market Offer on the remaining balance of 27,961,237 shares (17.4 per cent shareholding in ZCCM-IH) to be sold to the Zambian citizens and eligible Zambian institutions.

According to the ZCCM-IH statement for this month, as at close of business on August 23, 2015, the Government held 77.7 per cent shareholding in ZCCM-IH, through the minister of Finance, made up of 96,926,669 as Class A shares and 27,961,237 as Class“B” shares.

On August 24, 2015, GRZ transferred to the IDC all the 96,926,669 Class A shares, representing 60.3 per cent shareholding in ZCCM-IH,

the statement reads.

The 27,961,237 Class B shares, representing 17.4 per cent shareholding in ZCCM-IH, have not been transferred to the IDC at this stage and are currently being sold to the Zambian public under a Preferential Secondary Market Offer.

The shares transferred to the IDC represent 60.3 per cent of the shares while those for NAPSA represent 15.0 per cent and for the rest of the shareholders they represent 7.3 per cent.
Currently, ZCCM-IH is operating under the 2012-2016 Strategic Plan which includes such sectors as real estate and agriculture.

The strategy to diversify the portfolio whose aim is to maximise shareholder value is currently ongoing,

the organisation said.

The ZCCM-IH mission will continue to be one of maximising shareholder value for all its shareholders, which now includes the IDC. The shareholders own the company and management will continue to engage with its shareholders as it executes its mission.—Times of Zambia

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