KABANDA 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 companyâ€™s significant portfolio concentration in the industry.
â€œDespite 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 â€˜normalâ€™ market conditions,â€ 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.
â€œZCCM-IH will engage Government on the need to continually approach both Zambian and foreign investors to maximise their participation in the mining sector,â€ 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 shareholdersâ€™ owns 7.4 percent which is 12,018,401 shares.
KABANDA CHULU, Lusaka