The latest ZCCM - Investment Holdings (ZCCM-IH) as released to the market on 4th October 2012. It proposes a rights offer as part of an effort to liquidate debt owed to the Government of the Republic of Zambia following the ZCCM sell off during the privatisation era.
AUTHOR
Chola Mukanga | Economist
Copyright © Zambian Economist 2013
to sum up : Zambia has a budget overrun, the PF govt wants to recover its ZCCM-IH $ 370 million debt at whatever cost.
ReplyDeleteThe real cause of the negative balance sheet is that the company's assets are massively undervalued at year 1999/2000 cost values, the debt is only a pretext for going ahead with this rights issue.
Indeed the rights issue is not necessary because ZCCM-IH could recover $1 billion ($570 million kept by First Quantum Mineral, $300 million misappropriated by Mopani/Glencore, $100 million swindled, etc)
The ZCCM-IH board makes every effort to discourage and fear shareholders participating in this debt for equity conversion( register of shareholders forged , promises broken,...). The executive chairman Wila Mung'Omba and its board absolutely want the seat for the 8th director representing the minority shareholders to remain empty in order that their representative cannot poke his nose into this dirty trick.
Moreover the Board misleads the historical shareholders and the financial markets in order to justify a rights issue that will benefit only new shareholders.
Who will benefit from this scam ?
The current minority Shareholders will make every effort to derail this process !!