BUUMBA CHIMBULU writes
@SunZambian
ZCCM Investments Holdings Plc will transfer 71.4 percent and 100 percent of its equity stake in Investrust Bank and Mushe Milling Limited respectively, to the Industrial Development Corporation (IDC), as part of its reorganisation exercise.In the same vain, IDC will also transfer its 25 percent equity stake in Kagem Mining Limited to ZCCM-IH.This will enable the two entities achieve optimisation of operations and unlock opportunities for synergy within IDC/ZCCM-IH group.This is according to the proposed reorganisation announcement posted on Lusaka Securities Exchange (LuSE) signed by ZCCM-IH Company Secretary, Chabby Chabala.Mr Chabala said the board of ZCCM-IH group had approved the proposed the IDC/ZCCM-IH group reorganisation exercise where IDC transfers 25 percent of its equity stake in Kagem Mining Limited at fair market value ZCCM-IH.He indicated that ZCCM-IH would also transfer 71.4 percent equity stake in Investrust Bank Plc at fair market value to IDC.The group will also transfer its 100 percent stake in Mushe Milling Limited to IDC at fair market value.“These three corporate actions listed above will be undertaken simultaneously as a corporate group reorganisation exercise involving IDC and ZCCM-IH and constitute the proposed group portfolio rationalisation and reorganisation,” Mr Chabala said.Mr Chabala explained that the rational for the proposed group reorganisation was that the board considered the measure to enhance, improve operational efficiency and performance of ZCCM-IH.He said the group was realigning and streamlining management oversight on its investments portfolio to support and sustain company growth and unlock value for its shareholders going forward.“As per the LuSE listing requirements, the proposed group reorganisation involving ZCCM-IH and IDC was a related party transaction and was thus subject to approval by shareholders of ZCCM-IH via a meeting and also subject to approval by statutory regulatory authorities in Zambia,” he said.
Shareholders are advised to exercise caution when dealing in the shares of the company until details are provided in the circular and the proposed group reorganisation is presented to shareholders at the general meeting for their consideration.
