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Request for EOI for the Provision of Full Valuation of ZCCM-IH Investee Companies


1.0 Background
ZCCM Investments Holdings Plc. (ZCCM-IH) is an investment holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy. The company has a primary listing under ISIN number ZM0000000037on the Lusaka Stock Exchange, and secondary listings on London Stock Exchange and Euronext Stock Exchange in Paris.

The Zambian Government (GRZ) directly holds 17.25% of the shares in ZCCM-IH and 60.28% indirectly through Industrial Development Corporation (IDC), an investment company wholly owned by the Zambian Government. With the remaining 22.47% being held by institutions and individuals. The geographical spread of the minority shareholders, who number around 4300, covers over 29 countries in Europe, Africa, the Caribbean, Australia, Asia and the USA.

ZCCM-IH holds the majority of its investments in the mining sector and has shareholding interest in the undernoted companies:

No. Company Relationship Shareholding % Status
1 Ndola Lime Company Limited Subsidiary 100.00% Active
2 Misenge Environmental and Technical Services Ltd Subsidiary 100.00% Active
3 Nkandabwe Coal Mine Limited Subsidiary 100.00% Inactive
4 Investrust Bank Plc Subsidiary 71.40% Active
5 Kariba Minerals Limited Associates 50.00% Active
6 Maamba Collieries Limited Associates 35.00% Active
7 Konkola Copper Mines Plc Associates 20.60% Active
8 Kansanshi Mining Plc Associates 20.00% Active
9 Copperbelt Energy Corporation Plc Associates 24.10% Active
10 CEC Africa Investments Limited Associates 20.00% Active
11 Lubambe Copper Mine Plc Associates 20.00% Active
12 CNMC Luanshya Copper Mines Plc Associates 20.00% Active
13 NFC Africa Mining Plc Associates 15.00% Active
14 Chibuluma Mines Plc Associates 15.00% Active
15 Chambishi Metals Plc Associates 10.00% Active
16 Mopani Copper Mines Plc Associates 10.00% Active
17 Nkana Alloy Smelting Company Limited Associates 10.00% Inactive

IFRS requires that investments be stated at fair value at every annual reporting period. This requires that a valuation of the investments is conducted every financial year to ascertain their fair values. The fair valuation is conducted by an independent consultant as will be appointed from time to time.

In this respect fair valuation for the preceding financial year was conducted by Imara Corporate Finance.

ZCCM – IH now seeks to appoint a consultant to perform a full fair valuation of ZCCM – IH investments as at 31st December 2019 and a Desktop Valuation as at 31st March, 2020.

2.0 Objective of the assignment
The company is in the process of preparing its Industrial Development Corporation (IDC) reporting for the year ending 31 December 2019 and statutory financial statements for the year ending 31 March 2020 and requires a fair valuation of its investments as per IFRS 13 Fair Value Measurement and IFRS 9: Financial Instruments as at 31st December, 2019 and a desktop review as at 31 March 2020.

3.0 Scope of Work
Perform a full valuation as well as desktop review and provide an independent valuation opinion of ZCCM-IH’s investments in accordance with IFRS 13: Fair Value Measurement and IFRS 9: Financial Instruments.

The valuation will consider the following:

  • The review of historical, projected financial and operating performance of the Investee Companies and material developments.
  • The review of relevant industry, macroeconomic and market related information fundamental to each investment and assess the impact on the valuation of the investments.
  • The appropriate valuation methodology for each investment in consultation with ZCCM – IH’s management and external auditors.
  • Present to ZCCM-IH’s management and external auditors the nature and extent of changes in valuation assumptions and relative valuation result in line with the timelines stipulated.
  • Conduct impairment tests of an investment, where there in an indication of impairment in accordance with IFRS 9 – Financial instruments.
  • Attend to all incidental matters related to performance of fair market valuation

ZCCM-IH now invites eligible consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time
from Monday to Friday.

A consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below no later than Friday, 21st June 2019.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048

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