ZCCM-IH minority shareholders want dispute resolved
Published On February 2, 2014 » 2934 Views» By Administrator Times » Latest News, Stories
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By SYLVESTER MWALE –

MINORITY shareholders of the ZCCM Investment Holdings are concerned that share matters presented to the company management for resolution have not been addressed.

The Government as major shareholder recently agreed to change all or part of the K1.9 billion debt owned by ZCCM- Investment Holdings into shares.

A representative of the independent shareholders, Philippe Taussac however, said the matter had not been resolved with the minor shareholders and hoped to find a solution during this month’s meeting.

“At the moment, our issues are still pending. We have been promised that the company was working towards resolving our concerns,” he said.

ZCCM-IH executive chairperson Wila Mung’omba said Government which owns 87.6 per cent of the company had agreed to swap all or part of the K1.9 billion (about US$352 million) ZCCM-IH owes it into equity shares.

“The Government gave approval for the change of all or part of the debt owed by ZCCM-IH amounting to K 1.9 billion (approximately US$352 million) into equity through a rights issue,

Mr Mung’omba said in its 2013 report, the valuation exercise of ZCCM-IH and investments had been conducted to ascertain the appropriate value of the shares.

He said progress had been made in the implementation modalities involving the appointment of the lead financial advisors to undertake the rights issue.

Meanwhile, the ZCCM-IH has posted a turnover of K203.7 million during the six month period ended September 30, 2013, a representation of 46 per cent decline from the previous six months.

According to the director’s semi-yearly summary of financial performance of the institution, the latest figure is against the K375.8 million turn over the group achieved during the six months to September 30, 2012.

The decline was attributed to a drop in dividends earned from K232.7 million during the same period in 2012 to K45.2 million in the six months ended September 30, 2013.

According to the report released during the week by company secretary Chabby Chabala, dividends amounting to K43 million were earned from Kansanshi Mine while Chibuluma Mines paid K2 million.

During the period under review, turnover for Ndola Lime Company increased by six per cent to K118 million from K111 million in 2012 while interest earned from placements and fixed deposits amounted to K1.2 million from K1.1 million in 2012.

Mr Chabala stated that the cost of turnover increased to K130 million for the period to September 30, 2013 from K120 million in the previous year while operating profit of only K73.7 million was lower than K255.6 million earned last year.

 

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