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Valuation of ZCI shares in KCM completed

Valuation of ZCI shares in KCM completed
By Chibaula Silwamba
Saturday January 19, 2008 [03:00]

ROTHSCHILD has completed the valuation of Zambia Copper Investments (ZCI) shares in Konkola Copper Mines Plc (KCM) which stand at US $ 213 million (approximately K 850 billion). According to the update on the call option dated January 17, 2008, Vedanta Resources Plc now has a reasonable period within which to accept or reject the valuation price as determined by the Bank.

“Further to the cautionary announcements released on SENS between 2nd September 2005 and 9th January 2008, the directors of ZCI wish to inform shareholders that the independent investment bank’s valuation of the 28.4 per cent of Konkola Copper Mines plc shares held by ZCI through its wholly owned subsidiary, ZCI Holdings South Africa has now been received,” the company stated. “The Bank has valued ZCI’s investment in KCM at US $ 213.15 million as at 12 August 2005.”

The ZCI directors stated that ZCI shall be bound to accept the valuation.
“Shareholders are reminded that in the event that Vedanta Resources Plc is unwilling to pay the option exercise price as determined by the bank; it shall not be required to proceed with the associated purchase of ZCI’s KCM shares. In terms of the provisions of the call option deed, ZCI shall be bound to accept the valuation made by the Bank,” it stated.

Trading in ZCI securities has since been halted until further notice.
“ZCI shareholders are advised to continue exercising caution when dealing in ZCI’s shares until Vedanta’s decision regarding their acceptance or otherwise of the option price has been delivered to ZCI and a consequent announcement is released by ZCI,” the company stated.

Labels: ACCOUNTING, KCM

posted by MrK @ 4:53 AM