Maravi

ZCCM-IH buys off Maamba Collieries

ZCCM-IH buys off Maamba Collieries
By Kabanda Chulu
Wednesday January 09, 2008 [03:00]

ZCCM Investment Holdings (ZCCM-IH) has acquired 100 per cent the government shareholding in Maamba Collieries but government will retain a golden share with rights to appoint a director to sit on the board. And the Securities and Exchange Commission (SEC) has approved the registration of two billion ordinary shares of Prima Reinsurance plc at the Lusaka Stock Exchange (LuSE).

The acquisition of the country’s major coal mine follows the signing of the share transfer agreement between the government and ZCCM-IH and the agreement in support of the scheme of arrangement between the government, ZCCM-IH and Maamba Collieries Limited.

According to the withdrawal of the cautionary announcement released by Stock Brokers Zambia, ZCCM-IH would pay an agreed price purchase consideration in order to acquire the 100 per cent shares.

It stated that ZCCM-IH would take over all trade creditors’ liabilities which are the subject of the scheme of arrangement.

“Caution is no longer required to be exercised by shareholders when dealing in the company’s securities since the sale of the shareholding in Maamba Collieries has now been concluded upon the signing of the share transfer agreement and ZCCM-IH shall ownership, operational control of and responsibility of social assets run and operated by the company as at the effective date (30 November 2007),” it stated.

“However, government will retain a golden share that shall confer such rights and privileges as shall be stipulated by the new articles of association to be adopted by Maamba Collieries and by virtue of the golden share, government shall have the right to appoint a director to sit on the board of directors.”

According to the weekly stock news, the Securities and Exchange Commission (SEC) has approved the registration and offer document of Prima Reinsurance plc at LuSE.

“The SEC has approved the registration of two billion ordinary shares of Prima Reinsurance Plc and also approved the offer documents relating to the offer for sale of 500 million ordinary shares to the Zambian public through an initial public offer at an offer price of K8.00 per share,” it stated.

And last week the Lusaka Stock Exchange recorded a total of 1.3 million shares in 90 trades that resulted in a total turnover of K360 million.

According to the weekly stock news ending January 4, 2008, the all share index equity market closed at 3,584 points up by 1.44 per cent from 3,517 during the week ending December 28, 2007.

Labels: SEC, ZCCM-IH

posted by MrK @ 3:59 AM