SYLVESTER CHISHIMBA, Lusaka
ZCCM Investments Holding has implored Zambians to take advantage and buy shares floated by the company on the market.

During a ZCCM-IH share sale-down interactive meeting at Mulungushi International Conference Centre on Friday, ZCCM-IH chief financial officer Mabvuto Chipata said his company, through the share sale-down, intends to increase participation of Zambians in economic development.

We want to ensure a broad distribution of shares in order to increase the liquidity and trading of ZCCM-IH shares on the LuSE [Lusaka Stock Exchange]. We want to comply with LuSE listings requirements regarding the minimum percentage of shareholding available to the public, implement GRZ’s initial intention of the second phase of privatisation and also raise revenue for the treasury,

he said.

Mr Chipata said ZCCM-IH has put up 27,961,237 shares for sale at an offer of K38 and K40 as market price.

The preferred applicants, who are Zambian companies or the local people, will not pay any transaction fees but foreign nationals or companies will pay a transaction fee of 1.37 percent,

he said.

Mr Chipata said the share sale-down which has a percentage offer of 17.4 percent, closes on November 30, 2015, adding that the results of offer will be announced on December 14.

“We extended the period of offer for another two months in order to provide more opportunity to every Zambian within the country to know about the offer.We do not want to have at the end of the day people saying they did not hear about the offer,” he said.

THE sale of ZCCM-IH shares to the public has been extended to November 30, 2015, due to lack of adequate information on the preferential market offer.

This is in compliance with the listing rules of the Lusaka Stock Exchange (LuSE), and an announcement made by ZCCM-IH on Friday August 7, 2015, detailing the salient terms of the preferential secondary market offer.

The investing public has been advised that the period for the preferential offer has been extended to Monday, November 30, 2015.

According to information posted on the Industrial Development Corporation (IDC) website, the preferential offer was targeted to close on Friday, October 2, 2015, but ZCCM-IH has noted that most members of the public have not been able to access adequate information on the preferential offer due to the delayed availability of the information supplement.

“The company has decided to extend the offer period to Monday, November 30, 2015. The revised time line for the offer is shown under the revised salient dates,” the announcement reads.

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

Government has officially launched the sale of 17 percent of its shares in Zambia Consolidated Copper Mines Investment Holding -ZCCM IH- to the public.
Finance Minister Alexander Chikwanda says the move is a significant step in the evolution of the PF government’s development agenda which is anchored on creating higher levels of wealth for citizens.

Mr. Chikwanda says the off loading of government shares in ZCCM IH is in conformity with the Security and Exchange Commission’s requirement for companies listed on the Lusaka Stock Exchange -LuSE- to publicly float 25 percent of the shares.

Speaking during the launch in Lusaka last evening, Mr. Chikwanda further reveals that the sell of government shares will also raise resources for the treasury as was provided for in the 2015 budget.

And ZCCM IH Chief Executive Officer Pius Kasolo says the company has continued growing its portfolio beyond mining and is now venturing into energy, agriculture and real estate.

Dr. Kasolo says ZCCM’s vision is to effectively manage and grow investments as part of ensuring that shareholders get a return for the money.

He has also appealed to Zambians to buy shares in ZCCM-IH because despite metal prices being low currently the prospects are high as Zambia continues discovering new mineral rich areas.

And speaking during a panel discussion Lusaka Stock Exchange Chief Executive Officer Brian Tembo noted that the offloading of more shares in ZCCM-IH to the public will further improve the liquidity ratio on the stock market.

THE Lusaka Stock Exchange has posted a huge trade turnover of K581 million due to the massive revenue contributed from the sale of government’s shares in ZCCM-IH.

According to the LuSE monthly news bulletin for June 2015, total trade turnover on the local bourse was K581 million, up from K41.7 million recorded in May, representing a 1,327 percentage increase.

This is the highest trade turnover recorded this year so far, which translated to a daily average turnover for June at K26.4 million, up from K2.1 million for May, signifying a 1,132 per cent rise.

Last October, finance minister Alexander Chikwanda announced that the government would reduce its shareholding in ZCCM-IH from 87 per cent to 60 per cent via the sale of its shares proportionate to the required reduction.

Tranche 1 of the government’s sell-down of 15,850,631 shares out of its total 43,811,868 ‘B’ shares (representing 27.5 per cent) in ZCCM-IH transacted in one trade on the 9th of June, 2015, resulting in a turnover of K570,622,716,

the LuSE’s monthly bulletin for June stated.

“This left a balance of 27,961,237 shares which will be offered to Zambian citizens and other eligible Zambian institutions in the 2nd tranche of the government sell-down.”

And LuSE’s operations assistant Kennedy Kaela stated that ZCCM-IH’s huge transaction could be regarded as “unusual” mainly because the company does not trade that often.

The transaction could only be described as unusual because ZCCM has not been trading that often. Had it not been for ZCCM, June would have been a poor trading month for the exchange,

stated Kaela in response to a press query.

USAKA – Zambia, Africa’s No.2 copper producer, plans to cut power supplies to mines by up to 30% as early as next week, after water levels at its hydro-electric projects dropped due to drought, industry sources told Reuters on Tuesday.

The plan, still under discussion with the industry, will see state-run power company Zesco limit the amount of power it supplies to its customers, including mining companies, due to a powerdeficit of 560 MW.

Zesco said during the meeting that by October this year Zambia would face a very serious power crisis if it spared the mines,

said one source, who did not want to be named. “Mining companies said cutting their power supply would mean closing down some units and laying off some workers.”

Jackson Sikamo, president of the Chamber of Mines of Zambia, said he did not attend last week’s meeting and had not been briefed about its deliberations. Another source said the meeting, which included officials from Zambia’s energy regulator, asked mining companies to devise their own power reduction plan.

Mining companies were asked to come up with what they think is practical and they will present the proposal this week,

the second source said. Individual mining companies were not immediately available for comment. Foreign mining companies in Zambia include Glencore, Barrick Gold Corp, Vedanta Resources and First Quantum Minerals.

CHAMBO NG’UNI, Kabwe
THE World Bank will fund another lead remediation project in Kabwe aimed at mitigating the impact of lead poisoning on human health and the environment.

World Bank and Nordic Development Bank started supporting Zambia Consolidated Copper Mines Investment Holdings to address problems of lead pollution after the closure of Kabwe Mine from 1994 up to 2010.

The five-year programme, which will gobble US$60 million, will also cover Chingola and Mufulira.

Central Province permanent secretary Edwidge Mutale, who confirmed this in an interview yesterday, said the project is expected to commence next year.

The World Bank is coming and they would want to come and see how they can help to mitigate the lead poisoning here in Kabwe,

Ms Mutale said.
She said the project will be implemented through Kabwe Municipal Council, in collaboration with the ministries of Health, Community Development, Mother and Child Health, Mines, Energy and Water Development and Local Government and Housing.

The Ministry of Lands, Natural Resources and Environmental Protection and the Disaster Management and Mitigation Unit are part of the project.
Ms Mutale said as long as there are deposits of lead underground, people are at risk of exposure to the toxic mineral which was mined in Kabwe from 1906 up to 1994.

Ms Mutale said discussions on the implementation of the project have reached an advanced stage, and she is hopeful that the Ministry of Health will acquire equipment that will be used to detect lead in blood.

She commended the World Bank for coming on board to support government efforts in addressing the lead contamination issue.

We would have loved this project to start last year because we are having children being born; children who are growing up in areas affected by lead poisoning and they are at risk,

Ms Mutale said.

She also said the commencement of mining in Kabwe by Enviro Processing Limited will largely depend on expert advice from the Zambia Environmental Management Agency.

HE announcement that more than 15 million government’s shares in ZCCM Investment Holding (IH) were offered to National Pension Scheme Authority (NAPSA) through the Lusaka Stock Exchange (LuSE) has reignited public interest.

The public interest in last week’s announcement is justifiable considering that almost 28 million more shares are yet to be offloaded on the same bourse for the local individuals and companies to buy.