Government has announced that pursuant to the call option deed between Vedanta Resources PLC and Zambia Copper Investments, Vedanta has exercised its option to acquire a further 28.4% shares held by Zambia Copper Investments in KCM.
This option will bring the shareholding of Vedanta in KCM to 79.42 %.
This is contained in a statement availed to ZANIS in Lusaka today and signed by Commerce, Trade and Industry minister FElix Mutati.
Mr Mutati said call option deed is binding between Vedanta Resources PLC and Zambia Copper Investments and is not subject to any further approvals or consent of government.
He said, to this effect, an agreement has been reached in principle for Vedanta to offer part of its shareholding in KCM to the Zambian public, cognisant of the need for greater participation of Zambians in corporations operating in the country.
Mr Mutati explained that following Vedanta’s exercise of its option to acquire the 28.4 percent shares held by Zambia Copper Investments in KCM, the Zambian government is now in the process of constituting a negotiating team which will soon be meeting with a team from Vedanta.
The minister said government is desirous of of ensuring that it maximises the possible benefits to arise out of the transaction and therefore, expects that the negotiations will result in the best possible resolution to safeguard the public interest in KCM.
Hope the country is not being sold to iresponsible people. I truly hope this will benefit us the citizens as we buy shares and share the profits.
Why 79.42% is too much? when is our govt going to acquire large shares?When are we going to start controlling the economic system of our country?What are we lacking that our govt can’t invest in primary industries?Why should our economy depends on someone’s (alien’s) investiments?I am urging the govt not to depend on foreign investors to build our economy.Zambia is a rich country lets root out corruption and we will have a sustainable economy.Workers suffer alot when the so-called investors pull out.
Just who exactly is behind this Vedanta and what is their aim? Sounds to me like the big fish who always try to eat down the small fish. Dread nuh trust dem, a so dread a fi bun dem!
this is globalisation and its effect. ther will come a time when the whoole of africa will be sold and the locals will be left high and dry. that day is coming unless africans wake up!!!
Government should be a minor share holder, say 10% in all the mines. This is important. If government cannot accept this then they should by legislature have Zambians take up this share. It is unwise that all our emeralds, and riches of our minerals are in the hands of others. I have no problem with foreign investment but it should not be at the expense of local people. Let this be a win-win than a win-lose situation that we continue to witness. Management Buy Out which I was strongly for was also botched. Let us help empower ourselves, no one else shall do this for us.
Obviously KCM is a very profitable venture and these Indians have figured that out and so decided to increase their stake so that they take a big chunk of the profits made. Why didn’t the government just list their 28% onto the Lusaka Stock Exchange then the whole thing would be open to all Zambians. Too bad foreigners cashing in on our assets and when the copper circle turns, these Indians wont diversify KCM, they sale their stake and cut and run leaving us in the dust. Anyway good luck
As employees at CEC were given a chance to buy shares, will it be the same for KCM employees? Im sure this wont happen as clearly stated by #3 there is a big fish behind all this. zambians must be empowered to own shares in this big companies.
What will you Zambians do if you find that Levy and Mutati are the real beneficiaries of the KCM move?
There is need for a thorough forensic audit of all Zambian assets sold to foreigners to establish if there has been any defrauding of Zambians by politicians in power.
I feel that the govt should not have allowed such a move. They will have little or no say in the running of KCM. I however wish that when it comes to the buying of shares the first priority should be Zambian employees in KCM.
Very very nice. Great news we now own the biggest chunk of the Zambian economy. I will buy more shares in Vedanta on the Mumbai stock exchange. It is a pity you Zambians cannot buy shares in this company. To us KCM is like our local Indian company.
It’s Levy who is getting those shares, through is Indian friends
Just another myopic decision by our Government..the resources sector has seen all time highs in the prices of the commodities and this includes Cu as well. This is not just ill-timed but does not have the interests of the Zambians at heart…These shares should have been listed on LUSE for the general public to benefit..this effectively means that we are now a minor share-holder in our largest and probably most profitable asset..and profits I assume will be split on the basis of what one owns – even with the recent review of the royalty taxes..this still is a very BAD decision albeit the small print in the Contract between ZCI and Vendata Resources stating first right of offer to Vendata!
I wish I can visibly see the benefits of our natural resources. Our roads are bad, medical services are bad,educational system is bad etc Can the powers that be share the cake of the said improving economy with us after the sell of the mines.
Mutati why again? We have not forgetton the CEC issue man. you guys know very well that you cannot manage at the moment to compel these guys to flot shares at LUSE but you still go on giving them more control over our resources. What are your dreams imwe ba MMD kanshi? To enslave the country to your foreign friends? Since 1992 you have never changed and you seem not to have any plans to do so. understand this one thing please!!! Only Zambians can develop Zambia genuinly.
Guys, why can’t u think of buying these share apart from crying foul each time such a deal is made????????
Form investment forums or groups put all your monies and buy back zambia.We, We, We, gentlemen are the problem not the govt.
I think you’ve mistaken Zambians for people who care.
We have a lot of mining engineers, metallurgists, technicians and ordinary Zambian employees that should have a stake in the mines. As I said, 10% would not be bad. KK premise was not bad though the way they went about it to acquire 51% became faulty. The idea was not. Zambians should never be left to be awakened one day only to discover that their wasting asset was no more. These are issues that our members of parliament should be tackling, introducing such legislature instead of them debating or turning to “history channel,” always asking ministries, as to how much was allocated for this or that or how many mosquitoes were killed this year. MPs should know what is at stake for the
ctd from 17. nation and hold the bull by the horns. Investors or capitalism is by nature greedy and at the core is profiteering at someone’s ignorance or expense. Workers should often fight for their share and only then can their voices be heard. I am not against investment but Zambians should not be beggars in the midst of their riches. Let us take a leaf at Botswana and guard and protect our riches jealously by sharing our wealth. Let it be a win-win as opposed to a win-lose situation.
I think it’s still too early to judge the effects of such an investment. He who pays the piper calls the tune. The cards are in the hands of the investors already anyway so we are left with no other choice than to wait and see what or how much is in it for Zambians.
Govt stops ZCC from selling ZCI shares
By Kabanda Chulu
Monday April 14, 2008 Print Article Email Article
THE government has removed the Zambia Competition Commission from handling the selling of 28.4 per cent Zambia Copper Investment (ZCI) shares in Konkola Copper Mines to Vedanta Resources.
Last month, ZCI accused the Zambia Competition Commission (ZCC) of delaying the sale of its 28.4 per cent shares at a cost of US $213.15 million.
The ZCI, which is listed at the Johannesburg Stock Exchange, yesterday announced that the final hurdle in its long-delayed deal involving the sale of its stake in KCM had been cleared.
“The government of the Republic
“The government of the Republic of Zambia has removed this transaction from the jurisdiction of the Zambian Competition Commission and ZCI has in turn provided Vedanta with the requisite documentation to effect transfer of the remaining 28.4 per cent of KCM,” ZCI stated.
“As the transaction has now been completed, caution is no longer required to be exercised by shareholders when dealing in their securities and ZCI directors are currently examining the options for the future of the company and will shortly present shareholders with these proposals in order to involve all stakeholders in this process.”
The ZCC could not be reached for a comment because the acting executive director Thul
The ZCC could not be reached for a comment because the acting executive director Thula Kaira was out of the country.
However Kaira had in February 2008 indicated that there was need to undertake a thorough independent assessment to ascertain the suitability of the transfer of shares from ZCI to Vedanta in Konkola Copper Mines (KCM).
Currently, the KCM share structure comprises Vedanta with 51 per cent while ZCI has 24.8 per cent with the Zambian government through ZCCM Investment Holdings having 24.2 per cent. However, with this development, Vedanta would now control 75.8 per cent shares of Zambia’s largest copper mines.
the error was made in the first contract zci would bail out if at allpossible but it is abinding contract .Probably needs some introspection by the folks who handled the first negotiations