On Sunday 11 January 2015 ZCCM-IH took part in a Charity Fundraising Golf Tournament at the State House to help raise funds for the Kasisi Orphanage. The ZCCM-IH team led by Chief Executive Officer, Dr Pius Kasolo played very well and scored 1 under par over the 18 challenging holes. More importantly ZCCM-IH contributed K20,000 towards the Orphanage with total contributions from all companies exceeding K200,000
FLOATING shares on the capital market without a credit rating may inhibit public participation due to lack of information on the risk profile of the company intending to list, Credit Rating Agency (CRA) has observed.
Commenting on the low number of subscribers to the ZCCM Investment Holding (IH) share offer CRA executive director of strategy and business development, Chishimba Yumbe said lack of clarity on the risk profile and operating environment of ZCCM-IH may have discouraged investors.
Almost 28 million Government shares in ZCCM-IH were offered for sale to Zambians, but only 0.81 percentage point shares were bought when the offer closed on November 30, 2015, with the listing company attributing the low subscription to the challenges facing the global copper mining industry.
Mr Yumbe said in an interview on Monday that credit ratings analyse all risk issues and are a vital component of market information to be included in a public offering of shares if the public is to be attracted in the offer, especially during challenging times such as the fall in the prices of base metals on the global market.
CRA is licensed by the Securities and Exchange Commission (SEC) as Zambia’s only authorised provider of credit rating services and it seeks to promote credit ratings spur investments and economic development.
“It was important to understand why the response from public investors could have been low. Investors’ interests are primarily two-fold – reward and risk. The former is often well amplified in the company prospectus through the financial projections, but the latter if not well articulated can be very difficult to decipher by potential investors.”
“One way a risk is easily communicated is through a credit rating. To arrive at a credit rating entails independent assessment of all business and financial risks, and the credit rating report provides detailed pertinent information,” he said.
Mr Yumbe, who described the low participation as unfortunate, said the current economic downturn in base metal prices does not mean future prospects are poor hence, the need to view share offers and long-term investments.
On July 30, 2015, Government offered Zambian citizens 27,961,237 shares, representing 17.4 percent of its shareholding in the mining conglomerate but Stock Brokers Zambia said only 805 applications were received and processed, representing a total of 226,064 shares.
This means the residual shares amounting to 27,735,173 representing 17.3 percent shareholding in ZCCM-IH will still be retained by Government.
Source: Daily Mail
ABANDA CHULU, Lusaka
ABOUT 28 million Government shares in ZCCM- Investment Holdings (ZCCM-IH) that were offered for sale to Zambians have been shunned. Only 0.1 percentage point shares being bought when the offer closed on November 30, 2015.
ZCCM-IH has attributed the poor response to the preferential secondary market offer to the challenges facing the global copper mining industry.
On July 30, 2015, Government offered Zambian citizens 27,961,237 shares, represents 17.4 percent of its shareholding in the mining conglomerate.
In a statement released by Stock Brokers Zambia last week, only 805 applications were received and processed, representing a total of 226,064 shares (0.1 percent shareholding in ZCCM-IH) that were subscribed.
This means the residual shares amounting to 27,735,173 representing 17.3 percent shareholding in ZCCM-IH will still be retained by Government.
Commenting on the development, ZCCM-IH chief executive officer Pius Kasolo said the results of the preferential offer to Zambian citizens signify the challenges facing the global copper mining industry, and particularly the holding company’s significant portfolio concentration in the industry.
Despite the interim concerns, primarily driven by slower than historical Chinese demand for commodities, we are confident that the long-term prospects of the company remain overwhelmingly strong, and that the present difficulties offer a chance to learn, adapt, diversify, and realise benefits from opportunities that would not otherwise be possible under ‘normal’ market conditions,
he said.
Dr Kasolo said ZCCM-IH will remain committed to enhancing long-term shareholder value by continually seeking viable and sensible investment opportunities, while navigating prudently through challenging times.
ZCCM-IH will engage Government on the need to continually approach both Zambian and foreign investors to maximise their participation in the mining sector,
he said.
The shareholding structure subsequent to allotment will now be 60.3 percent which translates into 96,926,669 shares for Industrial Development Corporation, 17.3 percent (27,735,173 shares) for Government but held directly through the Minister of Finance.
National Pension Scheme Authority holds 15 percent, translating into 24,120,043 shares and other shareholders owns 7.4 percent which is 12,018,401 shares.
KWETO MFULA, Chingola
CHINGOLA residents have been offered to buy 1,000 former ZCCM-Investment Holding (ZCCM-IH) housing units at a cost of K1,337 per unit.
The houses will be offered to sitting tenants in line with Government’s home empowerment policy.
This came to light when Nchanga member of Parliament Wilbur Simuusa and Chingola town clerk George Mulenga met prospective beneficiaries at Banda Market in Nchanga-North yesterday.
Mr Mulenga told sitting tenants that the Ministry of Lands has since prepared letters of invitation of treaty to 500 of them, while the other 500 letters will be done at a later stage.
He said beneficiaries have been given 90 days in which to pay the required amount in full.
KOMBO KACHEMBA, Kitwe
THE Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) says the challenges facing the mining sector are temporary and they arise from changes in the supply and demand chain on the international market.
ZCCM-IH chief executive officer Pius Kasolo said the slump in copper prices on the international market is a routine economic trait which is not permanent but comes as a result of changes in the demand and supply chain.
What happens is that if China is not buying our copper, the mines reduce on production. At a certain point, when all the copper on the market is consumed, there will be high demand for the commodity and the prices will definitely go up. So what is happening in the mining sector in Zambia is temporary,
Dr Kasolo said.
He was speaking in an interview in Kitwe on Tuesday during a ZCCM-IH discussion forum dubbed ‘Share sale down promotion’.
ZCCM-IH is selling shares to members of the public at a share price of K38 per capital share.
Dr Kasolo projected that the price of copper on the international market is likely to improve in the next six months and appealed to Zambians to have confidence in the mining sector.
He said the mining sector still remains viable with mining activities still taking place in the North-Western Province.
Dr Kasolo said Zambia has plenty of copper ore deposits which are yet to be explored by investors willing to invest in the mining sector.
The North-Western Province will soon become the Copperbelt of Zambia. There are exploration works that are currently taking place here in Zambia for other minerals as well including gold, so our mines are still viable,
he said.
Dr Kasolo also said ZCCM-IH is capable of managing the mining sector should Government decide to take ownership of the mines.
He, however, said if ZCCM-IH has to take over the operations of the mines, it means the investment holding has to also inherit the huge debts accrued by the mine owners.
If President Lungu today tells me to be in charge of the mines, I can manage to run them, after all these mines are managed by Zambians,
he said.
Dr Kasolo said ZCCM-IH has the skills and expertise required to operate the mines effectively for the Zambian people.
And speaking during the forum, Dr Kasolo appealed to Zambians to buy shares in ZCCM-IH because it is diversifying its activities to include the agriculture and energy sectors.
He also assured Zambians that their investments will be protected should they choose to buy shares in ZCCM-IH.
Dr Kasolo said priority in buying shares has been given to Zambians for ZCCM-IH to be locally owned.
He appealed to Zambians to quickly buy ZCCM-IH shares before the promotion ends on November 30 this year.
And KELVIN CHONGO reports that mining expert Matheus Mphande has urged Government to consider value addition to copper as a way of protecting jobs in the mining sector.
“The only way we can develop the country is to get into processing of copper into copper wires, pipes and manufacturing of motor vehicle parts,” he said.
“With these plans in place even when copper prices fall at the London Metal Exchange, the economy will still remain strong,” he said.
Dr Mphande said many countries have no copper deposits and that Zambia must take advantage by getting into cooperation with countries like China, India or South Africa to set up a copper processing plant.
Dr Mphande said even South Africa, which manufactures cars such as Isuzu and Toyota, has no copper deposits and it would be appropriate for Zambia to enter into an agreement to supply finished copper products specifically for vehicle manufacturing.
Dr Mphande also said mine owners should stop importing lime but buy the locally produced one.
Copper at the London Metal Exchange was trading at US$4,525 per tonne yesterday.
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
ZCCM-IH helped sponsor the Bembas vs Ngonis Annual Golf Tournament at the Chainama Golf Club on Sunday 23 August 2015. As part of its Corporate Social Responsibility efforts, ZCCM-IH helped support this tournament whose proceeds will go towards the promotion of Junior Golf at the Chainama Golf Club. Dr Pius Kasolo, the Chief Executive Officer of ZCCM-IH who was the Guest of Honour at the event, also played a round of golf in support of the event.
Later in the evening during the Prize Giving Ceremony, he reminded those in attendance that ZCCM-IH shares were available for purchase as part of the GRZ sale down of its Shares and that the Company was the best investment they can make on the Lusaka Stock Exchange due to its extensive diversified portfolio which includes the major mines in 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.