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REQUEST FOR EOI FOR THE APPOINTMENT OF THE TRANSACTION ADVISORY TEAM FOR THE EURONEXT LISTING UPGRADE

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR THE APPOINTMENT OF THE TRANSACTION ADVISORY TEAM FOR THE EURONEXT LISTING UPGRADE – TENDER NO.: ZCCM-IH/004/2021

  1. INTRODUCTION

ZCCM Investments Holdings Plc (“ZCCM-IH” or the “Company”) is an investment holding company with diversified interests in mining, energy, property and other sectors of the Zambian economy.

The Zambian Government (“GRZ”) directly holds 17.25% of the shares in ZCCM-IH and 60.28% indirectly through Industrial Development Corporation (“IDC”), an investment company wholly owned by the Zambian Government. With the remaining 22.47% being held by institutions and individuals. The geographical spread of the minority shareholders, who number around 3,000, covers Europe, Africa, the Caribbean, Australia, Asia and the USA.

  1. BACKGROUND

ZCCM-IH is currently listed on the following three (3) stock exchanges:

    1. A primary listing on the Lusaka Securities Exchange (“LuSE”), having listed on 24 January 1996;
    2. A secondary listing on the London Stock Exchange (“LSE”), having listed on 29 June 1970; and
    3. A secondary listing on Euronext, Paris, having listed in October 1970.

The Company’s shares are split across the three (3) exchanges as follows:

Description Total Shares %
Euronext 10 619 577 6.60
LuSE 52 961 346 32.94
LSE 218 090 0.14
GRZ – Class A Shares 96 926 669 60.23
Reconciling Balance (1 512)  
Totals 160 800 286 100.00

Majority of the listed ZCCM-IH shares are listed on the LuSE, however, significant share trading activity takes place on the Euronext. Currently, ZCCM-IH share activity on all 3 exchanges has been plagued with illiquidity and a decreasing or stagnant stock price despite a positive turnaround in the Company’s earnings.

In an effort to restructure ZCCM-IH’s stock exchange listings to enhance shareholder value, increase its visibility in the stock markets and thereby trading activity on its secondary exchange listings, the Board of ZCCM-IH approved the upgrading of the listing of the ZCCM-IH shares on the Euronext Stock Exchange from the Access tier to the Growth tier (“the Transaction”).

Therefore, ZCCM-IH requires the services of an Advisory firm to successfully upgrade its listing on Euronext Access to Euronext Growth.

  1. Objective of the assignment

The Transaction Advisory Firm’s key objectives will be to:

    1. To advise on the listing upgrade methodology; and
    2. To actualize the listing upgrade in a manner consistent with all applicable rules and regulations.

ZCCM-IH now wishes to engage a Consulting firm for the Euronext Listing Upgrade.

ZCCM-IH now invites eligible consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.)

Interested consultants may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time from Monday to Friday.

A consultant will be selected using Quality Cost Based Selection (QCBS) method. Interested consultants must submit Interested firms must submit one (01) original and three (03) hard copies of the Expression of Interest (EOIs) to the address below no later than Wednesday 10th February 2021.

Procurement Manager
ZCCM Investments Holdings Plc
ZCCM-IH Office Park
Stand No. 16806, Alick Nkhata Road
Mass Media Complex Area
P.O. Box 30048
Lusaka.

Email: kabwek@zccmnew.wpenginepowered.com

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Invitation for Bids - Transaction Advisory Team for Euronext Listing Upgrade

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Mopani Takeover Meant To Protect Interests Of Zambians – ECL

Unlike those who are doubting their capacity to run the mines, my government believes that Zambians can successfully run them, President Edgar Lungu has said.

President Lungu said there is nothing wrong with government acquiring shares in the mines especially when the investor was not keen at pumping in resources.

He said when he addressed Village headmeen in Chinsali District of Muchinga Province that all the mines in the country were run by Zambians in the past.

The Head of State, however, said it was time to be innovative and come up with ideas on how best Zambians can run their own mines.

President Lungu said the acquisition of shares in Mopani Copper Mine is meant to protect the interests  of Zambians.

He says the acquisition of shares in Mopani mine was done through a negotiated deal adding that his government is not preoccupied with the selling of national assets like mines.

He assured the general public that his government will ensure that businesses become profitable for the benefit of the workers and all Zambians.

The Head of State also said he will not be distracted but ensure that Mopani operates well and that ZCCM-IH will manage to meet its obligations with regard to its decision to acquire shares in Mopani.

 

Source: http://www.daily-mail.co.zm/mopani-takeover-just-what-zambia-needed/
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Further cautionary announcement from ZCCM IH on Mopani acquisition

Further to the cautionary announcement dated 21st December 2020 and the recent press announcements, ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) hereby provides a further update to shareholders and the market that the Company’s discussions with Glencore Finance (Bermuda) Ltd (“Glencore”) regarding the future of Mopani Copper Mines Plc (“Mopani”) have progressed. ZCCM-IH has reached an agreement with Glencore, representing Carlisa Investments Corp. (“Carlisa”), for the acquisition of the 90% stake not currently held by ZCCM-IH in Mopani (“the Acquisition”).

The Acquisition presents a significant opportunity for ZCCM-IH and will transform the Company from an investment holding company into a world-class copper and cobalt mining company which will have the ability to create substantial value for its shareholders today and well into the future. The management and Board of ZCCM-IH have been working with a team of advisors to ensure that the most attractive structure is achieved for the Acquisition.

In line with the requirements of Section 9 of the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the salient features of the Acquisition are as follows.

Particulars of the Acquisition: Acquisition of 90% stake in Mopani Copper Mines Plc from
Carlisa Investments Corp Conditions Precedent include:

• Various regulatory approvals, including LuSE, Securities and Exchange Commission, relevant competition authorities; and
• ZCCM-IH Shareholder approval.

Consideration: USD 1
Other terms of the Acquisition:

• Agreement in relation to the debt of USD1.5 billion due by Mopani to Glencore; and
• Agreement of offtake rights to Glencore in respect of a portion of Mopani’s copper production for the period until the USD1.5 billion debt is repaid.

Value of Net Assets and Proforma Effect on ZCCM-IH:
To be advised in due course Profits attributable to Mopani and the Pro-Forma Effect on ZCCM-IH:
To be advised in due course Rationale for the Acquisition: The Acquisition allows ZCCM-IH to take control of one of the largest copper mines in the world. There are significant opportunities relating to the cobalt project, the copper resources and the recovery of the global copper price.

ZCCM-IH is working with Glencore and Mopani to firm up on the required technical and financial information and, therefore, the information relating to the proforma effect of the Transaction on ZCCM-IH shall be published in a subsequent announcement. In accordance with section 9 of the LuSE Listings Requirements, ZCCM-IH has commenced preparation of the Circular to be distributed to shareholders to convene a General Meeting of the members of the Company to approve the transaction. ZCCM-IH shall continue to give further updates in this regard.

Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s securities until a full announcement is made.

 

Source : http://fizambia.com/?p=9615
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Mopani Takeover Meant To Protect Interests Of Zambians – ECL

Unlike those who are doubting their capacity to run the mines, my government believes that Zambians can successfully run them, President Edgar Lungu has said.

President Lungu said there is nothing wrong with government acquiring shares in the mines especially when the investor was not keen at pumping in resources.

He said when he addressed Village headmeen in Chinsali District of Muchinga Province that all the mines in the country were run by Zambians in the past.

The Head of State, however, said it was time to be innovative and come up with ideas on how best Zambians can run their own mines.

President Lungu said the acquisition of shares in Mopani Copper Mine is meant to protect the interests  of Zambians.

He says the acquisition of shares in Mopani mine was done through a negotiated deal adding that his government is not preoccupied with the selling of national assets like mines.

He assured the general public that his government will ensure that businesses become profitable for the benefit of the workers and all Zambians.

The Head of State also said he will not be distracted but ensure that Mopani operates well and that ZCCM-IH will manage to meet its obligations with regard to its decision to acquire shares in Mopani.

 

Source : https://zambiareports.com/2021/01/22/mopani-takeover-meant-protect-interests-zambians-ecl/
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ZCCM-IH HAS CAPACITY TO RUN MOPANI COPPER MINE, SAYS IDC

Economy, Mining, Opinion

Written by 

Lusaka, 21st January 2021 – The Industrial Development Corporation (IDC) has said ZCCM-IH has the capacity to efficiently operate Mopani Copper Mines.

IDC Group CEO Mr Mateyo Kaluba said the mining company’s Board of Directors and Management would be competent enough to professionally run the newly acquired mine.

“In terms of our confidence that the mine will be professionally run, we have no doubt,” Mr Kaluba said, adding that the company would further seek a strategic equity and technical partner to enhance its capacity.

He reiterated that the acquisition of Mopani Copper Mine by ZCCM-IH was consistent with the direction the mining conglomerate was taking to have more control of mining interests in the country.

Mr Kaluba said the IDC, as ZCCM-IH’s holding company, was involved through an extensive consultation process to give the necessary guidance and approvals.

Regarding the payment of the US$1.5 billion transaction debt by Mopani to Glencore, Mr Kaluba said that the debt was the burden of the mining company itself and not the State. He added that the mine’s debt as a result of this transaction had no impact on the country’s sovereign debt.

Mr Kaluba explained that the deal was structured in such a way that Glencore would be the off taker of Mopani’s copper and that a 10% portion of the proceeds would go towards debt repayment. He said the debt would be fully paid over the next 10-17 years depending on the mine’s production capacity and fluctuations of the copper prices.

Mr Kaluba urged Zambians to be more confident in taking up more challenging assignments, as the government had created an enabling environment where companies such as ZCCM-IH and IDC are able to be more assertive in taking control of national assets.

Ends

Issued by: (Original signed)

Ms. Namakau Mukelabai

Head – Corporate Communication

Industrial Development Corporation

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Source: http://fizambia.com/?p=9626
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Further cautionary announcement from ZCCM IH on Mopani acquisition

Finance, ZCCM-Investment Holdings Plc

Written by 

Further to the cautionary announcement dated 21st December 2020 and the recent press announcements, ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) hereby provides a further update to shareholders and the market that the Company’s discussions with Glencore Finance (Bermuda) Ltd (“Glencore”) regarding the future of Mopani Copper Mines Plc (“Mopani”) have progressed. ZCCM-IH has reached an agreement with Glencore, representing Carlisa Investments Corp. (“Carlisa”), for the acquisition of the 90% stake not currently held by ZCCM-IH in Mopani (“the Acquisition”).

The Acquisition presents a significant opportunity for ZCCM-IH and will transform the Company from an investment holding company into a world-class copper and cobalt mining company which will have the ability to create substantial value for its shareholders today and well into the future. The management and Board of ZCCM-IH have been working with a team of advisors to ensure that the most attractive structure is achieved for the Acquisition.

In line with the requirements of Section 9 of the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the salient features of the Acquisition are as follows.

Particulars of the Acquisition: Acquisition of 90% stake in Mopani Copper Mines Plc from
Carlisa Investments Corp Conditions Precedent include:

• Various regulatory approvals, including LuSE, Securities and Exchange Commission, relevant competition authorities; and
• ZCCM-IH Shareholder approval.

Consideration: USD 1
Other terms of the Acquisition:

• Agreement in relation to the debt of USD1.5 billion due by Mopani to Glencore; and
• Agreement of offtake rights to Glencore in respect of a portion of Mopani’s copper production for the period until the USD1.5 billion debt is repaid.

Value of Net Assets and Proforma Effect on ZCCM-IH:
To be advised in due course Profits attributable to Mopani and the Pro-Forma Effect on ZCCM-IH:
To be advised in due course Rationale for the Acquisition: The Acquisition allows ZCCM-IH to take control of one of the largest copper mines in the world. There are significant opportunities relating to the cobalt project, the copper resources and the recovery of the global copper price.

ZCCM-IH is working with Glencore and Mopani to firm up on the required technical and financial information and, therefore, the information relating to the proforma effect of the Transaction on ZCCM-IH shall be published in a subsequent announcement. In accordance with section 9 of the LuSE Listings Requirements, ZCCM-IH has commenced preparation of the Circular to be distributed to shareholders to convene a General Meeting of the members of the Company to approve the transaction. ZCCM-IH shall continue to give further updates in this regard.

Accordingly, Shareholders are advised to exercise caution when dealing in the Company’s securities until a full announcement is made.

Source: http://fizambia.com/?p=9615
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ZCCM-IH HAS CAPACITY TO RUN MOPANI COPPER MINE, SAYS IDC

The Industrial Development Corporation (IDC) has said ZCCM-IH has the capacity to efficiently operate Mopani Copper Mines.

IDC Group CEO Mr Mateyo Kaluba said the mining company’s Board of Directors and Management would be competent enough to professionally run the newly acquired mine.

“In terms of our confidence that the mine will be professionally run, we have no doubt,” Mr Kaluba said, adding that the company would further seek a strategic equity and technical partner to enhance its capacity.

He reiterated that the acquisition of Mopani Copper Mine by ZCCM-IH was consistent with the direction the mining conglomerate was taking to have more control of mining interests in the country.

Mr Kaluba said the IDC, as ZCCM-IH’s holding company, was involved through an extensive consultation process to give the necessary guidance and approvals.

Regarding the payment of the US$1.5 billion transaction debt by Mopani to Glencore, Mr Kaluba said that the debt was the burden of the mining company itself and not the State. He added that the mine’s debt as a result of this transaction had no impact on the country’s sovereign debt.

Mr Kaluba explained that the deal was structured in such a way that Glencore would be the off taker of Mopani’s copper and that a 10% portion of the proceeds would go towards debt repayment. He said the debt would be fully paid over the next 10-17 years depending on the mine’s production capacity and fluctuations of the copper prices.

Mr Kaluba urged Zambians to be more confident in taking up more challenging assignments, as the government had created an enabling environment where companies such as ZCCM-IH and IDC are able to be more assertive in taking control of national assets.

Ends

Issued by: (Original signed)

Ms. Namakau Mukelabai

Head – Corporate Communication

Industrial Development Corporation

 

Source : http://fizambia.com/?p=9626
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Zambia: Global Copper Recovery to Lift Zambia’s Economy

Lusaka, Zambia — A RALLY in the price of copper globally is a major boost for Zambia in its efforts to revive the economy impacted by the coronavirus (COVID-19) and drought.

The sharp recovery in the price of the commodity has been on the back of United States policy expectations as the new administration of president-elect, Joe Biden, assumes office.

The administration has announced an aggressive fiscal stimulus package.

Copper prices are up to more than US$7,95 per tonne, having already gained 2,42 percent for the year.

Rand Merchant Bank (RMB) concurred with market sentiments that prices were expected to climb with potential scenarios similar to the global financial crisis where prices climbed to over $9 000/tonne.

“Such moves would greatly benefit environments like Zambia that need to beef up their reserve base as part of their economic recovery plan targets,” RMB experts, Daniel Kavishe and Neville Mandimika, stated.

Zambia is Africa’s second-largest producer of copper, after the Democratic Republic of Congo.

In 2020, it produced more than 646 000 tonnes of the metal in the first nine months of 2020, up from 590,321 tonnes in the same period last year

Copper mining is central to the economic prospects for the Southern African country and covers more than 80 percent of all exports.

On Tuesday, Glencore, the Anglo-Swiss firm, confirmed the sale of its 73 percent stake in Mopani Copper Mines to Zambia Consolidated Copper Mines (ZCCM).

Kavishe and Mandimika gave the transaction a thumbs-up.

“Our current analysis suggests that an increased stake in the mine would enable the Zambian government to benefit from higher dividend pay-outs in future,” the RMB experts stated.

 

Source : https://allafrica.com/stories/202101210506.html
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BOARD CHAIRMANS SPEECH ON ZCCM-IH’S ACQUISITION OF 90% SHARES IN MOPANI COPPER MINES

Good morning

Today’s event is a momentous occasion for ZCCM-IH and the country, as we pen down an agreement with our counterparts  to acquire 90%  of their shares in Mopani Copper Mines Plc.

In September last year, we announced to the market that  ZCCM-IH was in discussions with Glencore Finance (Bermuda) Ltd regarding the future of Mopani Copper Mines Plc

This move is in line with one of our new strategic pillars in our new strategic plan for 2020 to 2026, that aims at increasing our stakes in existing mining firms were we have minority stakes.

Hence, the acquisition of the 90% shares previously held by Carlisa Investments Corporation representing Glencore (73.1%) and First Quantum Minerals (16.9%) is a strategic move as we look to maximising shareholder value for the benefit of all stakeholders.

In line with the requirements of Section 9 of the Lusaka Securities Exchange Listing Requirements, we will give a detailed announcement in the course of this week, that sets out the salient features of the Acquisition.

Ladies and Gentlemen

As you may know, Mopani Copper Mines assets include operations that consist of four underground mines, a concentrator and a cobalt plant in Kitwe, and an underground mine, concentrator, smelter and refinery in the town of Mufulira, among others.

The remaining life of mine is 26 years for Nkana and 16 years for Mufulira, with 110 million tonnes in total, of proven ore reserves and copper grade of 1.89% as at 31st December 2019.

Suffice to say, Mopani has been operating for the past nine months without any capital injection from shareholders.

Our priority then is to turn around this asset  through  cost containment and Increased production output by bringing on line new production areas.

We will continue to give support to the hospital, the school and other social activities.

We will ensure continued operations of the mine, safeguarding of jobs and growth for the betterment of the country.

Ladies and Gentlemen

In line with our vision of being a world class investment holding company with a focus on mining, ZCCM-IH  will uphold the highest institutional standards in Environmental, Social and Governance principles and Transparency, driven by our extensive and deep industry knowledge and technical expertise in mining, financial and investment management.

As I conclude, I would like to express gratitude to Government through the Ministry of Mines, for the support rendered during the whole process, and to Glencore for its cooperation and patience.

And we also applaud Mopani management for keeping the mine afloat in the past months.

Thank you, and God bless you all.

Source: http://fizambia.com/?p=9588
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Cautionary Announcement on KCM from ZCCM IH

Economy, Opinion, ZCCM-Investment Holdings Plc

Written by 

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcement dated 23 May 2019, concerning the filing by ZCCM-IH of a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”), the appointment by the Court of Mr Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”) and the legal proceedings commenced in the High Court of South Africa and applications made to the Zambian High Court by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”).

Shareholders are informed that Vedanta appealed against the decision of the High Court which denied them their application to stay the liquidation proceedings and refer the matter to arbitration. The Court of Appeal on 20 November 2020 ruled in favour of Vedanta and stayed the liquidation proceedings and referred the matter to arbitration.

ZCCM-IH intends to appeal against the decision of the Court of Appeal and to stay the judgment.
ZCCM-IH will provide details on this matter, as it progresses, in due course.

In the meantime, Shareholders of ZCCM-IH are advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on07 January 2021

Source: http://fizambia.com/?p=9598