Zambia has received bids from Canada’s First Quantum Minerals (FQM) and others for a 17 percent stake in state mining investment arm ZCCM-IH, the finance minister said on Tuesday.
“There are multiple unsolicited offers on the table, including from FQM, which are based on preferential share conversions,” said Margaret Mwanakatwe on the sidelines of a mining conference in Cape Town.
“The offers relate to the ministry’s 17 percent holding in ZCCM-IH and a sale would be subject to cabinet approval,” she said.
Meanwhile, political analyst Sishuwa Sishuwa has claimed that former ZCCM-IH Chief Executive Officer Pius Kasolo was fired for his refusal to sanction the sale of Zambia’s 20% stake in First Quantum Minerals.
Dr Sishuwa said a very reliable source has just told him that President Lungu’s regime is now moving fast and that representatives of Government & FQM are currently in South Africa to conclude the deal which he called extremely nauseating.
“Unless they abandon the deal, the outcome is sealed,” he twitted.
But Former Lusaka Securities Exchange Chief Executive Officer Brian Tembo is doubtful that the deal is on the table.
Mr Tembo has since urged the public to visit the LuSE to understand the provisions of disposal of assets of a listed company to determine the truth around this issue and whether or not the correct process is or has been followed.
“ZCCMIH is listed in London, LuSE and on an unregulated French market. If at all there is truth in the 20% stake sell in one of its investee companies that clearly affects the earnings of shareholders (of which I am one). Listings Rules require that the company notifies existing and potential shareholders through a specific notice : Cautionary Notice.”
“The said notice requires to be sanctioned by SEC/LuSE. This is done as soon as the company gets approached by a buyer or intends to dispose off,” Mr Tembo said.
“In any case the company requires a Board and shareholders resolution to OK the transaction. Minority interests are particularly important in such circumstances. The CEO does not decide to dispose assets so I find those assertions strange but he or she implements lawful Board decisions.”