ZCCM Invs.Hldgs PLC Acquisition_Further Cautionary Announcement_Mopani (2977M)
January 20 2021 - 3:21AM
UK Regulatory
TIDMZCC
RNS Number : 2977M
ZCCM Invs.Hldgs PLC
20 January 2021
SENS ANNOUNCEMENT
(the "Notice" or "Announcement")
ISSUER
ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")
[Incorporated in the Republic of Zambia]
Company registration number: 119540000771
Share Code: ZCCM-IH
ISIN: ZM0000000037
Authorised by: Chabby Chabala - Company Secretary
SPONSOR
Stockbrokers Zambia Limited
[Founder Member of the Lusaka Securities Exchange]
[Regulated and licensed by the Securities and Exchange
Commission of Zambia]
Contact Number: +260-211-232456
Website: www.sbz.com.zm
APPROVAL
The captioned Notice or Announcement has been approved by:
i. the Lusaka Securities Exchange ("LuSE")
ii. the Securities and Exchange Commission ("SEC")
iii. Stockbrokers Zambia Limited ("SBZ")
RISK WARNING
The Notice or Announcement contained herein contains information
that may be of a price sensitive nature.
Investors are advised to seek the advice of their investment
advisor, stockbroker, or any professional duly licensed by the
Securities and Exchange Commission of Zambia to provide securities
advice.
ISSUED: 20 January 2021
ZCCM INVESTMENTS HOLDINGS PLC
[Incorporated in the Republic of Zambia]
Company registration number: 119540000771
Share Code: ZCCM-IH
ISIN: ZM0000000037
["ZCCM-IH" or the "Company"]
FURTHER CAUTIONARY ANNOUNCEMENT
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 of 90% stake in Mopani Copper
Acquisition: 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 To be advised in due course
and Proforma Effect
on ZCCM-IH:
Profits attributable To be advised in due course
to Mopani and the Pro-Forma
Effect on ZCCM-IH:
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.
By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 20 January 2021
T | +260-211-232456
E | advisory@sbz.com.zm
W | www. sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of
the Lusaka Securities Exchange and is regulated
by the Securities and Exchange Commission of Zambia
=============================================================================================================================================
20
January
2021
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